Sugar gains as mills abstain from selling

Sugar prices at mill level have shot up by Rs 15-20 on Thursday as mills abstained from selling at lower prices on expectation of higher demand. Up country and local stockists buying kept sentiment positive at the producing level, but in the local market, spot prices were steady with range-bound price movement because of need-based thin buying by retailers.

At the Vashi wholesale terminal market, spot prices for good quality sugar increased by Rs 5 a quintal. Naka rates under lifting pressure, ruled weak. Arrivals and dispatches were higher as the market was closed on Wednesday for Shivratri . Fresh demand

Mr Jagdish Rawal of B. Bhogilal and Co said mills were not keen to sell at lower prices. Fresh demands from neighbouring States and local retailers created a positive sentiment. Local demand was not according to expectations and most of the trade took place at the resale level. In March, with rising temperature and Holi festival, retail demand for sugar is expected to increase in the coming days.

On Wednesday, about 12-14 mills came forward with open tender offer and sold total quantity of about 75,000-80,000 bags, including 2 rail rakes (about 54,000 bags) in the range of Rs 2,690/2,730 for S-grade and Rs 2,740/2,780 for M-grade.

On Thursday, arrivals in the Vashi markets was about 58-60 truckloads (100 bags) and local dispatches were at 50-52 truckloads.

Bombay Sugar Merchants Association sugar rates were: Spot: S-grade Rs 2,811-2,861 (Rs 2,800-2,861) and M-grade Rs 2,853-2,921 (Rs 2,841-2,921).

Naka delivery: S-grade Rs 2,760-2,790 (Rs 2,760-2,800) and M-grade was Rs 2,810-2,865 (Rs 2,820-2,865).

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