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The overall sentiment in the sugar market improved on the Centre's nod for five lakh tonne sugar export under the open general licence (OGL) and extension of stock limit by further six months with increase in stock holding limit for traders to 500 tonnes from 200 tonnes. Market players are waiting for an announcement of free sale quota for next month. Mr Mukesh Kuwadia, secretary of Bombay Sugar Merchants Association, said on Wednesday that the Vashi market was closed, but prices increased by Rs 15-20 in line with firm mill tender rates. Today, naka and mill tender rates were quoted higher by Rs 5 . The situation was steady with usual demand and supply position. Traders are expecting higher demand for sugar in coming days, especially in April-May, due to higher temperature. For the last two days, the market sentiment has improved sharply.
Extension of stock limit
Regarding the extension of stock limit by further six months and increase in stock holding limit for traders to 500 tones from 200 tones, he said, “it will not have big impact because in easy demand- supply situation, generally traders/stockiests are not willing to stock more as 200 tonnes (2,000 bags of 100 kg each) limit is sufficient to cater the retailers demand. Very few players, supplying to bulk consumers may take the benefit.”
On Wednesday evening, about 18-20 mills came with tender offer and sold about 1/1.10 lakh bags in the range of Rs 2,680-2,725 for the S grade and Rs 2,735-2,775 for M grade. Sugar price in other producing centres also improved. In Maharashtra, sugar prices at the mill level last month touched the lowest level of Rs 2,640-2,670 for S grade and Rs 2,680-2,720 for M grade and bounced back. Arrival in the Vashi markets was at 49-50 truck loads (each 100 bags) and local dispatches were at 46-47 truck loads.
Bombay Sugar MerchantsAssociation sugar rates
Spot rates: S grade Rs 2,801-2,841 (Rs 2,781-2,815) and M grade Rs 2,841-2,926 (Rs 2,821-2,901).
Naka delivery rates: S grade Rs 2,770-2,800 (Rs 2,750-2,780) and M grade was Rs 2,785-2,880 (Rs 2,800-2,860).
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