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All-round selling by mills, cooled sugar down prices on Wednesday, with mill tender rates declining Rs 20-30 a quintal.
On the Vashi wholesale market, spot price came under pressure on selling pressure despite retail demand. Spot rates dropped by Rs 8-10 in line with decline of Rs 15-20 in Naka rates. Arrivals and dispatch were higher due to support of fresh demand.
Mr Mukesh Kuwadia, Secretary of Bombay Sugar Merchant Association, told Business Line : “In the physical market, the sentiment was steady on expectation of higher demand in the coming days due to summer. The market is witnessing sudden selling pressure from mills as they have to offload last month's carryover stock of one lakh tonnes before Thursday.
Wednesday's decline is the result of that. More number of mills came forward to sell at lower price. On the other side, fresh retail demand due to hot summer supported the spot market sentiment with marginal decline of Rs 8-10 in price.”
He said in current season, sugar production is expected be 28-30 per cent higher than last year, most of the big consumers and stockists are keeping away from bulk buying and building inventories on hopes of easy supply throughout the year.
According to the industry, up to March, sugar production was 205 lakh tonnes against 165 lakh tonnes during same period a year ago. For full year, market players are expecting the production between 246 lakh tonnes and 250 lakh tonnes.
On Tuesday, more number of about 28-30 mills came with tender offer and sold about 1.10-1.25 lakh bags (100 kg each) of sugar in the range of Rs 2,640-2,670 (Rs 2,660-2,690) for S grade and Rs 2,680-2,720 (Rs 2,700-2,750) for M grade. Arrivals in the markets were higher at 64-65 truckloads (100 bags) and local dispatches were at 62-63 truckloads.
Bombay Sugar Merchants Association sugar rates : Spot rates: S-grade Rs 2,776-2,825 (Rs 2,786-2,831) and M-grade Rs 2,821-2,916 (Rs 2,831-2,921).
Naka delivery rates: S-grade Rs 2,720-2,760 (Rs 2,730-2,780) and M-grade was Rs 2,760-2,830 (Rs 2,790-2,875).
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