Export hopes sweeten sugar

Spot sugar prices on the Vashi wholesale terminal market increased by Rs 10-15 on Monday on hopes the Centre will allow exports of at least 5 lakh tonnes.

At naka and mill levels, prices gained by Rs 15-20 a quintal. The volume improved on higher demand from local and other State markets. The undertone of the market was bullish as retailers rushed to buy after the weekend holidays.

Mr Jagdish Rawal, Joint Secretary of the Bombay Sugar Merchants Association said that the sentiment improved on hopes the Government may allow sugar exports of 5 lakh tonnes.

Secondly, the mills sector has demanded a lower free sale quota for March or extension of time for this month's quota. All these, if government takes any decision, will led to upside movement. Local and other states level market's buying has also increased recently.

On support of demand, freight rates at mill level firmed up by Rs 8-9 a bag due to shortage of trucks. Till Monday evening, about 14-15 mills sold about 80,000-85,000 bags in the range of Rs 2,680-2,720 for S-grade and Rs 2,750-2,780 for M-grade.

Arrivals in the markets were higher at 58-60 truckloads (100 bags each) and local dispatches were 56-57 truckloads. According to Bombay Sugar Merchants Association, rates for spot sugar were: S-grade Rs 2,801-2,861 (Rs 2,791-2,851) and M-grade Rs 2,831-2,921 (Rs 2,831-2,911).

Naka delivery rates were: S-grade Rs 2,760-2,780 (Rs 2,740 -2,770) and M-grade Rs 2,820-2,870 (Rs 2,800-2,860).