Sugar sees mixed trend before decision on exports

Our Correspondent Mumbai | Updated on March 18, 2011


Sugar prices at the Vashi market witnessed mixed trend on Friday, after rising for two days. Spot price was steady with nominal demand. At the naka level, prices for S- and M-grade lost and gained Rs 10 a quintal each. Because of the absence of resale selling at the mill level, market sentiment was positive. Firm trend in other major producing States supported trade in Maharashtra. Markets are hopeful of the government will make a favourable decision on sugar exports.

Mr Jagdish Joshi, a wholesaler said traders were expecting the Government may take a positive stand on the mills' demand for allowing exports. India is expected to have a surplus this year. Rising temperatures will lead to higher demand for sugar in the coming days. Fresh upcountry and local demand will push up prices further. Volume at the mill level improved sharply this week. This year, output is expected at 245-250 lakh tonnes, he added.

On Friday, arrivals in the Vashi markets were at 54-55 truck loads (each of 100 bags), and local dispatches were at 52-53 truck loads. About 13-15 mills, under tender offer, sold nearly 75,000-80,000 bags (of a quintal each) at Rs 2,665-2,710 for S-grade and Rs 2,710-2,770 for M-grade.

Bombay Sugar Merchants Association's spot rates: S-grade Rs 2,801-2,841 (Rs 2,801-2,841) and M-grade Rs 2,846-2,916 (Rs 2,841-2,921).

Naka delivery rates: S-grade Rs 2,760-2,780 (Rs 2,770-2,790) and M-grade Rs 2,820-2,870 (Rs 2,800-2,860).

Published on March 18, 2011

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