Sugar prices on the Vashi wholesale market declined for the third consecutive day as mills started selling at lower prices. Prices declined by Rs 30-40 a quintal on Tuesday at all levels. In the last three working days, sugar prices have come down by Rs 80-90 after announcement of sugar quota for August. While in the spot, retail demand kept curtailed the fall to Rs 45-50. A spokesman for the Bombay Sugar Merchants Association said prices fell sharply due to selling by mills at lower rates in main producing centres. Otherwise, local demand improved due to month beginning and on account of festivals ahead. Bulk consumers such as sweets, confectionary and snacks makers entered the market to cover their requirement.

Festival demand will lead to higher demand for sugar and other commodities. Hence, prices are expected to stabilise soon. The Government had declared free sale non-levy quota of 17.03 lakh tonnes for August against 15.60 lakh tonnes for July. Sugar future prices in commodity exchange also extended loss, following physical markets.

According to sources, 24-25 mills offered tenders on Monday evening and sold about 88,000-90,000 bags (each 100 kg), including one rake of 27,000 bags of M-grade by a Kolhapur mill) in the range of Rs 2,600-2,640 (Rs 2,635/Rs 2,670) for S-grade and Rs 2,660-2,740 (Rs 2,700 -2,780) for M-grade. Arrival in the market was 52-54 truckloads (each 100 bags) and local dispatches were 52-53 truckloads.

The Bombay Sugar Merchants Association sugar rates : Spot: S-grade Rs 2,731-2,821 (Rs 2,761-2,835) and M-grade Rs 2,786-2,931 (Rs 2,821-2941). Naka delivery: S-grade Rs 2,645-2,700 (Rs 2,700-2,730) and M-grade Rs 2,700-2,875 (Rs 2,760-2,900).

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