Commodities

Sugar declines on rush to exhaust sale quota

Our Correspondent Mumbai | Updated on April 07, 2011

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Sugar prices continued to decline on selling by mills as they tried to complete the balance of last month's carryover stock, the deadline for which was till Thursday. Mill tender rates came down to their lowest of the current calendar year.

At the mill level, prices for S-grade fell by Rs 10-15. M-grade was quoted unchanged. In the spot, less-than-expected local demand and higher arrivals pushed prices down. Spot rates declined by Rs 8-10. Accordingly, naka rates fell by Rs 10. Arrivals were higher than dispatches. Sentiment for stock buying at the lower rate was discouraging, said traders.

Mr Jagdish Rawal, Joint Secretary of Bombay Sugar Merchant Association, told Business Line: “Thursday being the last day for selling the balance of last month's one-lakh-tonne carryover stocks, mills were under pressure to offload the stocks. In the last two days, prices have seen a sharp price decline. Most mills started selling at the lower price. In the physical market, retail demand checked the bearish mood. The local demand is weak despite this being the start of the month.”

He said if flows from mills continue at the current level, prices may see range-bound movement in the coming days. . Arrivals were higher at 54-55 truckloads 100 bags each, and local dispatches were at 50-52 truckloads. Mill tender rates were quoted at Rs 2,620-2,660 a quintal for S-grade and Rs 2,675-2,720 a quintal for M-grade.

Bombay Sugar Merchants Association's spot rates: S-grade Rs 2,771-2,825 (Rs 2,776-2,825) and M-grade Rs 2,815-2,911 (Rs 2,815-2,911).

Naka delivery rates: S-grade Rs 2,730-2,750 (Rs 2,720-2,760) and M-grade Rs 2,770-2,860 (Rs 2,760-2,830).

Published on April 07, 2011

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