Sugar ruled flat on Thursday even as a nation-wide strike by Opposition parties against the petrol price hike reduced arrivals. Spot rates increased by Re 1 to Rs 2 for a quintal.

Traders said arrivals were low as transporters were not working due to the strike. There were no local despatches as retail transporters also joined the strike. Traders expect prices to rise with the start of the new month.

Commodity analysts said prices at the producing level have declined by Rs 70-80 a quintal in the last 10 days, while at the spot level, they have fallen by about Rs 50, as demand has been steady amid rising supplies. Producers continue to sell even though supplies are ample.

Moreover, speculators have reduced positions because of ample stocks. Besides, the industry has also revised up its output estimate to 260 lakh tonnes. A fall in spot demand has also brought down sugar futures. Demand from neighbouring States has been absent, too, for a long time now.

Higher output and the nearing due date to fulfil the free-sale quota has left producers with no choice but to sell, a wholesaler said. In Vashi, the 25-30 truckloads that arrived were not unloaded due to the strike. Higher arrivals are expected on Friday. On Wednesday, 12-13 mills offered tenders and sold about 42,000-45,000 bags at Rs 2,780-2,840 (Rs 2,780-2,840) for S-grade and at Rs 2,850-2,930 (Rs 2,850-2,930) for M-grade.

Spot rates: S-grade Rs 2,920-2,970 (Rs 2,922-2,971) and M-grade Rs 2,995-3,140 (Rs 2,996-3,141).

Naka delivery rates: S-grade Rs 2,880-2,910 (Rs 2,880-2,910) and M-grade Rs 2,970-3,040 (Rs 2,970-3,040).

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