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Sugar prices at Vashi wholesale market was down by Rs10–12 on Monday due to month-end limited demand. All stakeholders are keenly waiting for the announcement of the new month's free sale quota as mills have exhausted most of the current month's quota and hence are not under selling pressure. Vashi APMC markets closed after 2 p.m. as traders and mathadi kamgars participated in a rally against FDI in retail sector. Morale was low due to lack of demand, said traders.
Market sources said, last Tuesday, the Government decided to allow 10 lakh tonnes sugar exports and remove stock limits. The market took this as a positive move and prices shot up to Rs 3,300–3,400 on Wednesday. Then, due to month-end lower local demand and expectations of sufficient free sale quota for December, the market sentiment was under check.
Traders are expecting 16.50–17 lakh tonnes of free sale quota for next month. Last year, in December, a total of 17.08 lakh tonnes (free sale 15 lakh tonnes and levy 2.08 lakh tonnes) of sugar were made available in the country. This year, considering higher production and stock, the government declared slightly higher free sale quota. In October (full festival month), free sale quota was 17 lakh tonnes and sugar prices couldn't cross Rs 3,000. While for November, the free sale quota was at the same level and demand also eased but prices went up to Rs 3,400 for a quintal, said a wholesaler.
On Saturday, mills kept away from offering tenders for M-grade sugar. Limited mill have sold small quantity as mills were not interested to sell at a lower price. In Vashi market, volume was lower due to half-day closure and month-end period. On Saturday, about 10 – 12 mills offered tenders and sold about 28,000-30,000 bags of S-grade sugar to local traders in the range of Rs 2,970– 3,030 (Rs 2,980–3,050). Tender rate for M grade was quoted nominal at Rs 3,050–3,120 (Rs 3,070–3,180).
Arrivals in Vashi market were at 48-50 truckloads and local dispatches were lower at nearly 25–30 truck loads as market was closed after 2 p.m. In the international market on Friday, March-12 futures was down $4.40 to $598.20 ($602.60) and May-12 futures was $590.90 ($594.60).
Bombay Sugar Merchants Association sugar rates:
Spot rates: S-grade Rs 3,136-3,221 (Rs 3,131-3,235) and M-grade Rs 3,232- 3,392 (Rs 3,242-3,392).
Naka delivery rates: S-grade Rs 3,075-3,120 (Rs 3,080-3,150) and M grade was Rs 3,160- 3,250 (Rs 3,170-3,280).
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