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Spot sugar prices at Vashi market continue to rule weak on Tuesday on lack of demand and hand to mouth trade volume. A higher arrival keeps ready market under pressure. Spot prices decline by Rs 8-Rs 10 a quintal. Naka level price ruled steady on eased selling by resalers.
Mills tender rates came down by Rs 15 / Rs 20 as producers were forced to sell in line with limited off take. Moral was weak, no one want to have big deal for inventory building. Poor local retail demands keeps volume at low level.
Mr Hemant Vora of Kavita Trading Co, said selling pressure at mill level continue to dominate as out of 3.50 lakh tonnes last month's carry over stock, still some quantity is yet to be sold by producers. Like in January-February, current month also in the first fortnight the market players seems to be on bearish mode.
Due to less than expected local demand and absence of neighbouring states buying along with the easy supply position, sentiment is to have needed based buying only. Stockiest keeps away from bulk and inventory buying. Mills are selling slowly, to avoid building up more stocks. Government has declared total 16.84 lakh tonnes of normal free sale sugar quota for March-11, higher than February's quota of 16.23 lakh tonnes. Freight rates were steady at higher level with Kolhapur-Karad side freight rates were quoted Rs 80 / Rs 85 a bag of 100 kg.
An arrival in the markets was about 50/52 truck loads (each of 100 bags) and local dispatches were at 44/45 truck loads. On Monday about 14/15 mills by tender offer sold about 1.25 to 1.50 lakh bags in the range of Rs 2,670 / Rs 2,720 (Previous day Rs 2,690 / Rs 2,730) for S grade and Rs 2,725 / Rs 2,775 ( Rs 2,740 / Rs 2,790) for M grade.
Bombay Sugar Merchants Association sugar rates:
Spot rates: S grade Rs 2,801 / Rs 2,851 (Rs 2,811/ Rs 2,861) and M grade Rs 2,846 / Rs 2,916 (Rs 2,841 / Rs 2,921).
Naka delivery rates: S grade Rs 2,770 / Rs 2,810 (Rs 2,770 / Rs 2,800) and M grade was Rs 2,815 / Rs 2,850 (Rs 2,820 / Rs 2,880).
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