Sugar prices decreased by Rs 15-20 a quintal, declining by a total of Rs 70-75 over the last two days.

Prices extended their losing streak on Thursday, tracking weak demand in the domestic as well as the international futures market and increased selling by resellers in naka delivery.

Sugar futures prices were down by Rs 25-30 till noon Thursday. At mill level, the price of quality sugar ruled marginally weak on expectation of higher demand while fair quality sugar declined by Rs 10-20.

According to sources, arrivals and dispatches on the Vashi market improved ahead of the Ganeshotsav festival as retailers and bulk consumers entered the market with fresh orders. Traders expect prices of quality sugar to settle down at current levels.

Only needy mills may sell fair quality sugar at lower prices before month-end under pressure to offload the allotted free sale quota quantity. Freight rates were stable after Wednesday's sharp decline of Rs 40-45. Local and neighbouring States' demand was good at mill level.

Buying inquiries from Gujarat, Rajasthan, Madhya Pradesh and southern States are expected to rise. Mills continued to sell at the current market rates to exhaust their monthly quota. Arrivals improved along with improvement in demand. On Thursday, more than one lakh bags of sugar were sold by Maharashtra's mills, including one rail rake – about 27,000 bags — to neighbouring states. On Thursday, arrivals at the Vashi market were about 54-55 truckloads (each 100 bags of 100 kgs) and local dispatches were also higher at 50-52 truckloads.

Around 18-20 mills have sold about 70,000-75,000 bags through tender offer to local traders in the lower range of Rs 2620-2650 (Rs 2630-2670) for S-grade and Rs 2670-2750 (Rs 2690-2750) for M-Grade.

Bombay Sugar Merchants Association's spot rates: S-grade Rs 2756-2845 (Rs 2781-2845) and M-grade Rs 2806-2961 (Rs 2811-2961).

Nakadelivery rates : S-grade Rs 2710- 2750 (Rs 2720 –2750) and M grade Rs 2760- 2870 (Rs 2770 -2870).

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