On Tuesday, spot sugar prices at the Vashi market eased further by Rs 5/Rs 10 a quintal on limited retail buying and weak tendency at mill level.

Naka rate was steady on lower resale selling. Mill tender rates were quoted lower by Rs 10 late evening. Volume was nominal. Market undertone was weak. Due to poor demand since last Tuesday sugar prices are weakening, said traders.

A wholesale trader said retail demand at the local as well as upcountry level is not showing any improvement despite it being the start of the month. Nominal and hand-to-mouth purchase sentiment continued since last fortnight, keeping price volatility rangebound and erasing any gains.

Sugar prices have slipped Rs 20/Rs 30 in the last eight days.

Very marginal quantity is sold by producers from the current month's normal quota of 13 lakh tonnes. Most of the mills were till last week, offloading last month's carryover stocks of 3 lakh tonnes. Including Mumbai, other main consuming markets / centres are also witnessing poor demand and weak sentiment, he added.

On Monday evening, about 13/14 mills came with tender offer and sold about less than expected 23,000 / 25,000 bags of sugar in the range of Rs 2,680 / Rs 2,720 for S grade and Rs 2,730 / Rs 2,770 for M grade a quintal.

Tuesday evening, tenders were expected lower by Rs 10/Rs 15. Arrivals in the markets were higher about 45/46 truck loads (each of 100 bags) and local dispatches were about 40/42 truck loads led to increase in market inventory. As per traders estimates, Vashi market carries about 50 / 55 truck load as inventory.

Bombay Sugar Merchants Association rates: Spot: S grade Rs 2,811 / Rs 2,851 (Rs 2,811 / Rs 2,831) and M grade Rs 2,853 / Rs 2,921 (Rs 2,850 / Rs 2,930). Naka delivery rates: S grade Rs 2,760/ Rs 2,800 (Rs 2,760 /Rs 2,800) and M grade was Rs 2,800 / Rs 2,860 (Rs 2,800 / Rs 2,870).

comment COMMENT NOW