Spot and naka rates of sugar dropped by Rs 20-30 on the Vashi wholesale market on Friday as local demand was poor and resellers sold to mills before the due date for lifting stocks gets over. Upper-level producers did not change their rates despite poor response to tender offers. Tender rates ruled steady. After witnessing a sharp rise in prices, the sugar market passed through a correction phase today as response to tender offers of mills was thin, Mr Jagdish Rawal of B. Bhogilal and Co. said. Resellers preferred to book profits and avoided new buying. Prices went up by Rs 130-140 in the past two days after the free-sale quota for July was announced. Stockists took this as an opportunity for booking profits as pressure increases for outstanding purchases/commitments for July 5 and July 10.

Players in the physical market are waiting for the retail demand to rise. Mills are reluctant to sell at lower rates as the crushing season is almost over demand from bulk consumers and exporters will increase. Festive season will begin in Maharashtra from the second week of July, while the rest of the country will be celebrating various festivals between August and December. So consumer demand is going to rise in the coming months. Consumer demand is also expected to rise for the new month from next week. On Thursday evening, 15-16 mills came with tender offers and sold 14,000-15,000 bags of a quintal each at Rs 2,630-2,680 (Rs 2,630-2,710) for S-grade and at Rs 2,710-2830 (Rs 2,700-2,800) for M-grade. Arrivals were at 55-56 truck loads of 100 bags each, and local dispatches were at 45-46 truck loads. Bombay Sugar Merchants Association's spot rates: S-grade Rs 2,726-2,772 (Rs 2,741-2,811) and M-grade Rs 2,796-2,961 (Rs 2,800-2,966).

Nakadelivery rates: S-grade Rs 2,700-2,740 (Rs 2,730-2,760) and M-grade Rs 2,780-2,880 (Rs 2,800-2,900).

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