Fresh buying by mills lifts sugar

Our Correspondent Mumbai | Updated on March 16, 2011

SUGAR   -  Business Line

Sugar prices at the Vashi market rose by Rs 10-20 on Wednesday on fresh buying at the mill level. Mill tender rates increased by Rs 15-20 a quintal, as demand from Maharashtra and neighbouring States improved. Buyers are betting on buying for building up stocks as summer approaches. Naka rates also witnessed firm trend, in line with the mills. Spot market improved on higher local demand. Morale was bullish on expectation of a favourable decision for exporters from the Government after the meeting on Thursday scheduled in Delhi.

Mr Mukesh Kuwadia, secretary of Bombay Sugar Merchants Association, said expectation of supportive decision on sugar exports and increased fresh demand for summer pushed up the market. Mills are now expecting a spurt in demand distributors have exhausted their stocks.

Mr Jagdish Joshi, a wholesaler, told BusinessLine, “The market has been witnessing bearish mood for almost a fortnight. Now, with fresh buying by stockists, prices have started improving. Mills are not keen to sell at lower rates.” Local demand/dispatches were higher than arrivals on Wednesday. Stockists also bought more. This year India's sugar production is expected higher by 55-60 lakh tonnes to 245-250 lakh tonnes, compared to 190 lakh tonnes last year. So, the Government may decide to allow exports. Globally, sugar prices last week touched their highest level in 30 years. Currently, it is ruling at $700 a tonne.

Arrivals in the Vashi markets were at 52-53 truck loads (each of 100 bags), and local dispatches were at 55-56 truck loads. About 13-15 mills under tender offer sold nearly 1.75-2 lakh bags (of 100 kg each) at Rs 2,660-2,710 (Rs 2,645-2,690) for S-grade and Rs 2,710-2,760 (Rs 2,690-2,745) for M-grade. There was a talk of buying by neighbouring States in rail-rake form.

Bombay Sugar Merchants Association spot rates: S-grade Rs 2,796-2,831 (Rs 2,790-2,831) and M-grade Rs 2,841-2,906 (Rs 2,820-2,901).

Naka delivery rates: S-grade Rs 2,750-2,780 (Rs 2,750-2,770) and M-grade Rs 2,800-2,860 (Rs 2,800-2,840).

Published on March 16, 2011

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