Commodities

Bulk demand for sugar likely to ease post-Diwali

Our Correspondent Mumbai | Updated on October 28, 2013 Published on October 28, 2013

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Sugar prices on the Vashi wholesale market declined by Rs 1-2 a quintal on Monday as producers continued selling locally in the absence of upcountry demand. Naka and mill tender rates were unchanged.

The volume was routine as stockists kept away from building inventories. The market also carries ample stocks and supply is ample.

Jagdish Rawal of B. Bhogilal & Co said that in the last 10-15 days bulk and retail demand for Diwali rose but continuous supply from producers kept the price volatility thin.

However, millers are now not willing to sell at lower rates (because the current prices are lower than cost of production).

On the other hand, bulk demand will continue till next week then that will drop putting pressure on market.

Supply is ample so traders are not willing to bet for more. The Vashi market carries stock of about 115- 120 truckloads, he said.

An analyst said that a dispute over sugarcane prices between farmers and mills may delay crushing in the new season. Farmers from Maharashtra, Uttar Pradesh and Karnataka are demanding higher price for cane while millers want to rationalise cane prices in line with sugar prices.

Arrivals in Vashi market continued to be 62-63 truckloads (100 bags each), while local dispatches were also 61-62 loads.

On Saturday, only 8-10 mills came forward with tenders and sold about 34,000-35,000 bags at Rs 2,700-2,840 (Rs 2,700-2,840) for S-grade and Rs 2,880-3,000 (Rs 2,880-3,000) for M-grade.

The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 2,892-3,030 (Rs 2,892-3,032) and M-grade Rs 3,010-3,231 (Rs 3,011-3,232). Naka delivery rates were: S-grade Rs 2,840-2,880 (Rs 2,840-2,880) and M-grade Rs 2,950-3,120 (Rs 2,950-3,120).

Uttar Pradesh rates were: Lakhimpur Rs 3,320 and Muzzafarnagar Rs 3,220.

Published on October 28, 2013
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