Mills refuse to sell sugar at lower rates

Our Correspondent Mumbai | Updated on July 04, 2011


A firm trend in sugar prices continued on the Vashi wholesale market as pressure of resale-selling eased and mills were unwilling to sell at lower rates. Spot rates were up by Rs 10-15 a quintal on Monday as retail demand increased.

Upcountry markets also showed improvement of Rs 15-20 on fresh demand.

Sentiment was in line with an increase of Rs 10-20 in naka and mill tender rates. Volumes increased as retailers made their usual purchases at the beginning of the month.

Mr Harakhchand Vora, Vice-President of Bombay Sugar Merchants Association, said that the prices improved as local demand rose and because there was a rise of Rs 15-20 a quintal in southern States. Buyers in Gujarat, Rajasthan and West Bengal are covering the required quantity at lower price.

A spokesman of B. Bhogilal and Co said eased selling by resellers and price freezing by producers kept the sentiment positive.

The crushing season is over and open door for exports for declared quantity will continue to support sentiment. From August festival season will start and demand for sugar will rise. Mills expect demand support and so are holding prices, he added.

On Saturday 20-22 mills came with tender offer and sold 65,000-70,000 bags (100 kg each) in the range of Rs 2,640-Rs 2,690 (Rs 2,630-Rs 2,680) for S-grade and Rs 2,680-Rs 2,800 (Rs 2,680-Rs 2,800) for M-grade. Arrival in the market was 48-50 truckloads ( 100 bags each) and local dispatches were 44-45 truckloads.

Bombay Sugar Merchants Association's spot rates were : S-grade Rs 2,733-2,762 (Rs 2,731-2,762); M-grade Rs 2,781-2,961 (Rs 2,786-2,961).

Naka delivery rates : S-grade Rs 2,700-2,730 (Rs 2,690-2,730); M-grade Rs 2,760-2,860 (Rs 2,740-2,880).

Published on July 04, 2011

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