Commodities

Stockists' demand boosts sugar prices

Mumbai | Updated on March 17, 2011

SUGAR





Spot sugar prices on Vashi market rose for the second day by Rs 10-15 a quintal on Thursday. Fresh upcountry and local demand boosted the morale. At the mill level, prices rose by Rs 25-30, while at the naka level prices increased by Rs 15-20, as stockists and retailers came into the market for fresh buying for the summer. Volume at mill and naka levels also improved with the rise in price.

The Government's meeting on sugar exports at Delhi, scheduled on Thursday, has been postponed. The prices are rising now on fresh buying by stockists before summer begins, said Mr Harakhchand Vora, Vice-President of Bombay Sugar Merchants Association. Mills are not keen to sell at the current lower rates.

Volume at the mill level has improved sharply. Mills are selling mostly to local- or state-level buyers. Neighbouring states are buying hand-to-mouth, and once they start procuring from Maharashtra, prices may improve sharply. During April and May, consumption demand for sugar rises, while the crushing season comes to an end around May. On Thursday, arrivals in the Vashi market were at 49-50 truck loads (each of 100 bags), and local dispatches were at 53-54 truck loads. About 15-16 mills, under tender offer, sold nearly 1.4-1.5 lakh bags (of 100 kg each) at Rs 2,680-2,740 (Rs 2,660-2,710) for S-grade and Rs 2,750-2,830 (Rs 2,710-2,760) for M-grade.

Bombay Sugar Merchants Association's spot rates: S-grade Rs 2,801-2,841 (Rs 2,796-2,831) and M-grade Rs 2,841-2,921 (Rs 2,841-2,906).

Naka delivery rates: S-grade Rs 2,770-2,790 (Rs 2,750-2,780) and M-grade Rs 2,800-2,860 (Rs 2,800-2,860).

Published on March 17, 2011

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