Commodities

Sugar firms up on strong retail demand

Our Correspondent Mumbai | Updated on July 21, 2011

sugar

Firm sugar prices at upper mill level lead to rise in spot rates by Rs 5-7 a quintal on Thursday. Mills tender rates increased by Rs 5-10 on improved local retail demand. Stockists were active buyers, expecting higher demand in the coming days. Naka rates were almost unchanged.

A wholesaler said there is no sign of selling pressure for current month's free sale quota as mills are holding the price and keeping tender offer open, despite poor response from buyers. Pressure may be seen next week as monthly quota is due. With clear weather condition, retail demand improved traders' participation. Secondly, new month quota will be announced next week which will be a driving factor for the market. The quantity of quota will be the deciding factor for future movement.

He said on Wednesday about 24-25 mills have offered tenders and have sold nearly 65,000-70,000 bags (100 kg each) to State level stockists in the range of Rs 2,670-Rs 2,725 (Rs 2,665-Rs 2,720) for S-grade and Rs 2,750-Rs 2,830 (Rs 2,750-Rs 2,820) for M-grade. Little quantity of super fine quality M-grade sugar was sold at Rs 2,850-Rs 2,855 also. Neighbouring States' buying was absent. Transport freight rates were unchanged. Arrival in the Vashi market was 51-52 truck loads (each of 100 bags) and local dispatches were 49-50 truck loads.

This year sugar production is 245 lakh tonnes (lt) higher than 190 lt last year. Domestic demand is expected at 225 lt. For next season year starts from October, mills sector is expecting further increase in production to 260-265 lt tracking higher sowing of sugarcane this year.

Bombay Sugar Merchants Association sugar rates:

Spot rates: S-grade Rs 2,806-Rs 2,842 (Rs 2,791-Rs 2,842) and M-grade Rs 2,871-Rs 2,991 (Rs 2,851-Rs 2,986).

Naka delivery rates: S-grade Rs 2,750-Rs 2,790 (Rs 2,750-Rs 2,790) and M-grade was Rs 2,820-Rs 2,950 (Rs 2,820-Rs 2,950).

Published on July 21, 2011

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor