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Spot sugar prices at the Vashi wholesale market ruled slightly firm on Tuesday on higher retail demand as the market was closed the previous day. Dispatches were higher than arrivals. Spot prices increased by Rs 8-10 a quintal in quality S grade sugar. M grade was up by Rs 20. However, due to the increase in resale selling pressure, naka and mill tender rates ruled unchanged with marginal Rs 3-5 increase – decrease on increasing inventory pressure at the higher level. The moral was steady and traders are waiting for any cues to lead sentiment, said market sources.
As the market was closed on Monday due to Ashadhi Ekadashi festival there was no activity at the upper level, a wholesaler of Vashi market said. Very few mills have offered tenders, and in the absence of active buyers, the volume was very thin. The Centre has clarified about no further addition. Relaxation in export quantity already declared has eased the expectation of higher out go from mills. If the local consumer demand support does not improve, prices will again come under pressure. However, from the next month, festival season will start in India and the demand is expected to rise, he added.
Sugar output
This year India's sugar production is far above at 242 lakh tones than 190 lakh tonnes last year. In the next season year also, the mills sector is expecting a further increase in production to about 260-265 lakh tonnes tracking higher sowing of sugar cane this year. According to the agriculture ministry data, as on July 8, total sugarcane acreage in the country is higher by 2.38 lakh hectors to 51.38 lakh hectors.
Monday being a holiday mood, about 10-12 mills offered tenders and sold about 20,000-25,000 bags (100 kg each) in the range of Rs 2,680-2,725 (Rs 2,680-2,730) for S grade and Rs 2,760-2,850 (Rs 2,760-2,840) for the M grade. Arrival in the market was 49-50 truck loads (each 100 bags) and local dispatches were higher at about 50-52 truck loads . In the London market, white sugar August futures price was up by 0.40 to 817.90 dollars (816.30 dollars) a tonne.
Bombay Sugar Merchants Association sugar rates:
Spot rates: S grade Rs 2,771-2,851 (Rs 2,761-2,832) and M grade Rs 2,861-2,991 (Rs 2,841-3,001).
Naka delivery rates: S grade Rs 2,770-2,800 (Rs 2,780-2,810) and M grade was Rs 2,830-2,900 (Rs 2,820-2,955).
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