Sugar market again turned weak at upper level on Thursday as some mills offloaded it at reduced rates. In the physical market, need-based demand kept the volume steady.

Naka rates were down by Rs 10 a quintal. Tender rates ruled almost steady as mills were reluctant to sell at lower rates. Traders are continuously buying according to need, said a wholesaler of Vashi wholesale market.

He said considering the lower price, local as well as upcountry traders are now ready to bet for building inventory, which was lacking for some time due to need-based retail demand.

On Thursday, one rail rake – about 27,000 bags (each 100 kg) – of M-grade was sold by mills at Rs 2,500 a quintal. On Wednesday evening, mills sold about about 70,000-75,000 bags to local traders.

This week, the market has witnessed higher volume (from 60,000-65,000 bags last week to 75,000-80,000 this week), indicating buying interest. However, traders are still sticking to need-based buying. From next month, demand is expected to rise. In Vashi market approximately 68-70 truckloads (each of 100 bags of a quintal each) of inventories are lying. At producing level about 15 lakh tonnes sugar are lying in open space due to lack of proper storage facilities. International sugar price going up sharply by more than $100 to $706 dollar a tonne from $603 last month offers a good opportunity for India to ship more sugar in world market.

Sources said in last two days about 28-30 mills have sold more than 1.75-2 lakh bags of sugar (100 kg each) in the price range of Rs 2,450-2,490 for S-grade and Rs 2,480-2,570 for M-grade. On Thursday, arrivals were 48-50 truckloads (each of 100 bags) and local dispatch was about 46-47 truckloads.

Bombay Sugar Merchants Association sugar rates: Spot: S-grade Rs 2,582-2,641 (Rs 2,592-2,642) and M-grade Rs 2,646-2,791 (Rs 2,656-2,791).

Nakadelivery rates : S-grade Rs 2,540-2,580 (Rs 2,540-2,590) and M-grade Rs 2,600-2,660 (Rs 2,610-2,700).

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