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Sugar prices at Vashi market continued to decline on the fifth consecutive day on absence of fresh demand; and mills started selling at lower rates.
Desperate selling by mills on Friday in Maharashtra, Karnataka and Uttar Pradesh resulted in price decline of Rs 10-15 a quintal at mill level.
In Mumbai due less than expected retail demand sugar rates came down by Rs 8-10 at spot and naka level. Stockists were under pressure to sell in resale at lower rates.
Arrivals were higher than dispatch. With the due date of carryover stock of February reaching closer, there is pressure and a bearish mode. Mr Harakhchand Vora, Vice-President of the Bombay Sugar Merchants Association, told Business Line , “After waiting for a long time for some positive steps from the Government, mills have now started desperate selling to avoid pilling up inventory stocks affected the market sentiment heavily. At trade / stockists no one wants to have big deal as prices are not resulting in a remunerative end / mode. All are doing fresh trade as per the need and demand. Selling and lifting pressure for 15thof March due date contracts kept market players away from fresh buying. Pipeline is almost hand to mouth.”
Meanwhile, with the easy supply position, traders are expecting some support of retail demand for Holi festival next week. Price may witness range-bound movement.
Last month, at this time mill tender rates were at Rs 2,640-2,670 for S grade and Rs 2,680-2,730 a quintal. The present demand- supply situation indicates further decline in price till it reaches that level. As mills are not very keen to sell at lower rates due to non-parity prices may stabilised at that level.
Arrival in the markets was at usual level about 42-43 truckloads (each of 100 bags) and local dispatches were at 35-36 truckloads. About 14-15 mills made tender offer, out of that only 2-3 mills sold very little quantity in the range of Rs 2,660-2,700 for S grade and Rs 2,710-2,750 for M grade. Most of mills kept tender offer open with holding the rates.
Bombay Sugar Merchants Association sugar rates: Spot rates: S grade Rs 2,800-2,851 (Rs 2,811-2,851) and M grade Rs 2,831-2,901 (Rs 2,846-2,916).
Naka delivery rates: S grade Rs 2,750-2,790 (Rs 2,760-2,780) and M grade Rs 2,800-2,850 (Rs 2,800-2,860).
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