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Sugar prices on the Vashi wholesale market declined further by Rs 10 on Thursday in naka delivery due to selling pressure from mills and resellers.
At the spot and mill level, prices ruled steady as some fresh retail buying supported the sentiment and arrested price decline. The undertone of the market wasn't bearish, as retail local demand is supposed to rise from next week, said traders.
Sugar prices at the Vashi market declined by Rs 110-120 in spot and Rs 120-130 in naka and mill level this month. Upcountry buying is also not picking up. Mr Harakhchand Vora, Vice-President of the Bombay Sugar Merchants Association, told Business Line, “after declining continuously, prices may stabilise at the present level because of expectation of lower quota for new month, possible extension for current month quota, and fresh demand for the new month. Second, the Government may declare lower quota for February to balance the demand-supply equation.”.
Arrivals in the Vashi market were lower at about 34-35 truck loads (each 100 bags) and local dispatches were about 32-34 truckloads.
According to Bombay Sugar Merchants Association, spot sugar rates were: S-grade Rs 2,851-2,891 (Rs 2,851-2,891) and M-grade Rs 2,886-2,951 (Rs 2,892-2,951). Naka delivery rates were: S-grade Rs 2,810-2,840 (Rs 2,820-2,850) and M-grade Rs 2,850-2,890 (Rs 2,850-2,900).
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