Spot sugar prices at the Vashi market declined by Rs 5-7 on Thursday, due to poor month-end local demand. Naka and mill tender rates ruled steady as the mills were not very keen to sell at lower rates. Some trade in resale D/O took place at rates that were Rs 4-5 lower. All are waiting for an announcement on sugar quota for the month of April-11. The morale was steady as most of the players expect the new quota to set the course of the market.

Match effect

Mr Jagdish Rawal, Joint Secretary of the Bombay Sugar Merchants Association, said on Wednesday that due to the India-Pakistan cricket match, holiday mood prevailed during the day, resulting in very low volume at the mill level. 6-8 mills sold about 23,000-25,000 bags of sugar to State-level traders in the early part. The market was almost closed in the afternoon. Mills sold S grade sugar at Rs 2,660-2,680 and M grade at Rs 2,700-2,750.

On Thursday, mills were offering tender in the same range. The buying sentiment is still not picking up despite the general rise in temperature. Local retailers are buying as per need. From next week, local demand is expected to rise. Arrival in the markets was lower at 34-35 truckloads (each of 100 bags) and local dispatches were at 36-38 truckloads. In the international market, sugar prices came down from a 30-year high of $834 a tonne last month to $700 a tonne now, thus reducing the margins on sugar exports sharply, Mr Rawal added.

Bombay Sugar Merchants Association sugar rates : Spot rates — S grade, Rs 2,781-2,831 (Rs 2,791-2,831); and M grade — Rs 2,831-2,916 (Rs 2,826-2,921).

Naka delivery rates : S grade, Rs 2,750-2,770 (Rs 2,750-2,780); and M grade, Rs 2,800-2,860 (Rs 2,795-2,870).

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