Sugar prices at the Vashi wholesale market improved by Rs 15-20 a quintal in the morning session on Wednesday. The market closed at 1 p.m. as traders took part in a rally against FDI in retail sector. Arrivals and dispatches slightly improved on festival demand. Moral was firm . The market will remain closed from Saturday to Monday, said traders.

According to sources, ahead of festivals, retail demand improved as expected. Bulk buyers also came forward with some fresh buying. Neighbouring States also started inquiring at lower rates. Moral improved at the upper level naka and mill tender rates on increase in demand for fair quality sugar. Mills continued to sell at the present rates. The demand from sweet, confectionary and snacks makers, is expected from Thursday.

World market

In world market, white sugar price bounced back $25.80- 736.30 a tone. The market lost $67 till Monday this month. At the end of July-11, a London October future was at $777.40 level. Meanwhile, the Directorate of Sugar has issued release orders for the export of 4,33,045 tonnes till Tuesday, against additional 5 lakh tonnes allowed for export under OGL. The Government has allowed a total of 10 lakh tonnes sugar export under the OGL in 2010-2011 (October-September) year. If more sugar exports are not allowed, then India may end the season year with more than 60 lakh tonnes of stocks, said sources.

On Tuesday, about 20-21 mills offered tenders and sold about 75,000-80,000 bags (each 100 kgs) in the range of Rs 2,570-2,625 (Rs 2,555-2,615) for S grade and Rs 2,630-2,720 (Rs 2,620-2,700) for M grade. Arrivals in the market were 48-50 truckloads (each 100 bags) and local dispatches were 50-52 truckloads.

Bombay Sugar Merchants Association sugar rates:

Spot rates: S grade Rs 2,716-2,841 (Rs 2,700-2,831) and M grade Rs 2,761-2,951 (Rs 2,741-2,941).

Naka delivery rates: S grade Rs 2,660-2,700 (Rs 2,650-2,700) and M grade was Rs 2,720-2,850 (Rs 2,710-2,880).

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