Mixed trend in sugar

Spot sugar prices at the Vashi terminal market show mixed trend on Tuesday with fine quality sugar increasing by Rs 5 a quintal and regular quality declining by Rs 25 a quintal. Naka and mill tender rates remained range-bound on eased supply from mills and need-based buying by stockists. Morale was steady on expectation that mills would continue selling and month-end local demand would be poor in the coming days, said traders.

Most of the stockists/traders at the Vashi are not keen on adding more stocks as there is enough stock of about 50-55 truck loads, Mr Hemant Vora of Kavita Trading Co. said. Buying from mills is presently need-based, keeping volumes at nominal level. Freight rates at the mill level ruled steady. In absence of fresh buying by bulk consumers, producers turned to the local retail markets. Because of poor buying by the neighbouring States, mills were offloading in the local market, he said.

On Monday evening, about 8-10 mills came with tender offer and sold about 32,000-35,000 bags (each of 100 kg) only at Rs 2,640-2,675 for S-grade and Rs 2,690-2,750 for M-grade. Arrivals were higher at 38-40 truck loads (each of 100 bags), and local dispatches were lower at about 25-28 truck loads because of thin demand. The Government has declared 16.23 lakh tonnes of free-sale sugar quota for this month, less than January's 17 lakh tonnes. But as there are fewer days in February and retail/upcountry demand is dull, it will weigh on the market sentiment.

Bombay Sugar Merchants Association's spot rates: S-grade Rs 2,771-2,836 (Rs 2,780-2,831) and M-grade Rs 2,821-2,896 (Rs 2,821-2,891).

Naka delivery rates: S-grade Rs 2,730-2760 (Rs 2,725-2,770) and M-grade Rs 2,780-2,830 (Rs 2,775-2,830).

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