Sugar range-bound as traders stay hand

Spot sugar prices on the Vashi wholesale terminal market ruled steady on Friday with Rs 2-3 range-bound price movement, as traders kept away from taking fresh positions before the Budget. Bullish sentiment at the mill level continued.

Sugar sector is expecting positive measures in the forthcoming Budget. At the local level, routine demand-supply position kept the sentiment steady at spot and naka levels. According to mill sources, the country's sugar production will be around 245-250 lakh tonnes in the season ending September. Maharashtra is expected to produce 94 lakh tonnes and Uttar Pradesh 64 lt. A wholesale trader said that on Thursday 14-15 mills sold around 60,000-65,000 bags in the range of Rs 2,680-Rs 2,730 for S-grade and Rs 2,750-Rs 2,800 for M-grade. Arrivals in the markets were higher at 52-53 truckloads (10 tonnes each) and local dispatches were 48-50 truckloads. Freight rates rule steady after sharp increase in the last fortnight, he said.

According to the Bombay Sugar Merchants Association, spot sugar rates were (Rs/quintal): S-grade Rs 2,811-2,850 (Rs 2,811-2,845) and M-grade Rs 2,831-2,921 (Rs 2,831-2,921). Naka delivery rates: S-grade Rs 2,780-2,800 (Rs 2,780-2,800) and M-grade Rs 2,830-2,880 (Rs 2,830-2,870).