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Spot sugar prices at the Vashi market increased sharply by Rs 15-20 a quintal on Monday on fresh retail demand and expectation of lower quota for February along with the extension for this month's unsold balance quota. Higher dispatches than arrivals supported the sentiment as well for naka and mill delivery rates.
Up to last Friday, on lack of demand, spot prices had declined by about Rs 150-160 a quintal from the beginning of the month. Naka and mill tender rates also rose Rs 20. Morale was firm as supply is tight, traders said.
Mr Hemant Vora, a wholesale trader, said, “Sugar prices at the Vashi market, up last week, declined Rs 170-200 at the naka and mill level this month on higher free sale quota and on limited buying by stockists due to continuous lack of demand. On the other hand, mills are not very keen to sell at lower price. From next week, expectation of local retail and upcountry demand in the beginning of the new month will support the price.”
extension of quota
Another trader said as the mills have demanded extension of this month's free sale quota or lower quota for new months and seeing the pressure on stocks at the mill level, the Government may do something for the sugar sector.
Out of about 65-70 truck loads last Friday, stocks decreased sharply on higher dispatches. Traders are now eagerly waiting for announcement of the February month's sugar quota and extension.
On last Saturday about 12/13 mills came forward with tender offer and sold about 75,000-80,000 bags of sugar at Rs 2,705-2,740 a quintal for S grade and Rs 2,730-Rs 2,800 a quintal for M grade. On Monday evening, mill tender rates were expected at Rs 2,730-2,760 for S grade and Rs 2,740-2,810 for M grade. Arrivals in the Vashi market were lower at about 28-30 truck loads (each of 100 bags) and local dispatches were about 35-38 truck loads.
According to Bombay Sugar Merchants Association, spot sugar rates were: S grade Rs 2,851-2,882 (Rs 2,831-2,866) and M grade Rs 2,881-2,931 (Rs 2,861-2,921). Naka delivery rates were: S grade Rs 2,810-Rs 2,840 (Rs 2,800-2,830) and M grade Rs 2,850-Rs 2,890 (Rs 2,840-2,880).
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