Comments
Sugar prices at Vashi market on Thursday saw a small-range bound movement due to limited demand and supply. In the spot market, S grade sugar drop by Rs 5, where as M grade was up by Rs 5. Mills are not willing to sell at lower prices as they expect fresh demand for summer in the coming days. Mr Harakhchand Vora of Kavita Trading Co said that the market ruled unchanged as there was very limited activity in the absence of retail and bulk demand. Since the beginning of the month, naka and mill tender rates have not showed any big up movements because of ample supply from producers. Local demand is need-based because of the summer vacation. On the export front, the sharp decline in international prices have reduced profit margins. For the sugar sector, the domestic market is the main consumer and in the absence of demand, not much is happening. Despite crushing season coming to an end soon and many mills in Maharashtra already closed, the steady sentiment is not changing.
International market
Higher production and exports from Thailand put pressure in the international market. According to an analyst, Thailand's sugar production in the current year reached 98 lakh tonnes compare to 72 lakh tonnes last year. India's sugar production is also expected to be higher at 250 lakh tonnes (last year's production was 190 lakh tonnes). Considering the higher production and supply position, international sugar prices in the last three months declined by nearly 30 per cent to $600 per tonne on Wednesday. On February 2, international sugar prices touched the $830 per tonne level, highest since January, 1989. In the Mumbai market, the local demand was hand-to-mouth as it is the vacation period. Arrivals and dispatches were at usual levels. Most of the mills kept a hold on the price and left the tender offer open. About 7-8 needy mills have sold about 35,000-40,000 bags of sugar (100 kg each) to local stockists and one rail rake — about 27,000 bags to eastern side buyer at reduced rates of Rs 2,630- Rs 2,670 for S grade and Rs 2,680- Rs 2,750 for M grade. Arrivals in the market were about 35 truck loads (of 100 bags each) and local dispatches were at the same level.
Bombay Sugar Merchants Association sugar rates
Spot rates: S grade Rs 2,750-Rs 2,791 (Rs 2,756-Rs 2,791) and M grade Rs 2,808-Rs 2,911 (Rs 2,801-Rs 2,911).
Naka delivery rates: S grade Rs 2,710-Rs.2,740 (Rs 2710-Rs 2,740) and M grade was Rs 2,770-Rs 2,860 (Rs 2770-Rs 2,860).
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.