Commodities

Sugar remains firm on fresh buying

Our Correspondent Mumbai | Updated on February 18, 2011

Spot sugar prices at the Vashi terminal market ruled steady on Friday, after the Government deferred a decision on sugar exports on Thursday. Prices at spot, naka and mill-tender levels remained range-bound, despite freight rates at producing centres rising by Rs 5 on shortage of trucks. Volumes/dispatches were higher than arrivals as the market will remain closed until Sunday.

According to the Bombay Sugar Merchant's Association,sentiment was strong even though the decision on exports was deferred. Continued support from need-based local as well as upcountry fresh buying along with neighbouring States kept the market afloat at the mills level. Most of the market players still hope exports will be allowed. They believe that the Government may allow five lakh tonnes initially — which is not being implemented because of high food inflation. But now with inflation subsiding, chances are more sugar will be allowed to ship. Further, the mills have demanded either the quota for March 11 be lowered or more time be given for the current month's quota; this will either stabilise or push up prices. Fresh buying by neighbouring States is also supporting the prices.

On Thursday evening, about 14-15 mills offered tenders and sold about 78,000-80,000 bags (each of 100 kg) at Rs 2,670-2,710 for S-grade and Rs 2,720-2,775 for M-grade. Arrivals were at 50-52 truck loads (each of 100 bags), and local dispatches were higher at 52-54 truck loads. On Saturday, the Vashi market will be closed because of a festival. Bombay Sugar Merchants Association spot sugar rates: S-grade Rs 2,791-2,851 (Rs 2,791-2,851) and M-grade Rs 2,831-2,911 (Rs 2,831-2,911).

Naka delivery rates: S-grade Rs 2,740-2,770 (Rs 2,740-2,770) and M-grade was Rs 2,800-2,860 (Rs 2,800-2,860).

Published on February 18, 2011

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