Sugar prices fell further by Rs 5 a quintal on Monday due to eased demand in the end of the month.

Naka and Mill tender rates ruled steady but undertone remained weak as producers were under selling pressure due to less-than-expected lifting by traders. Volume was routine.

Domestic sugar futures also was bearish adding fuel to weak sentiment of the market said stockist.

A Vashi-based wholesaler said as mills have to complete 46 lakh tonnes of free sale quarterly quota for April – June in time. Two months have already passed and as per rough trade estimate producers are under heavy pressure of stock due to higher production and slower lifting by stockists. At the market level, need-based retail shopkeepers' demand and absence of bulk consumers' demand mounted sufficient inventory stocks hence stockist keep away from big deal. Supply is ample in the market while demand is need-based.

Sugar prices in Uttar Pradesh and in southern States are ruling at par with Maharashtra . Under selling pressure last week, prices lost by Rs 60-80 a quintal at mill level. As the Vashi market currently has has stocks of about 90-100 truckloads (each of 100 bags), arrivals and local despatches remained routine.

At Vashi market, physical arrivals were 53- 54 truck loads and dispatches were about 50–52 truck loads. On Saturday, 15-16 mills offered tenders and sold about 46,000–48,000 bags in the range of Rs 2,780-2,840 (Rs 2,780-2,840) for S-grade and Rs 2,850-2,930 (Rs 2,850-2,930) for M-grade.

Bombay Sugar Merchants Association's spot rates: S-grade Rs 2,926-2,976 (Rs 2,930-2,981) and M-grade Rs 2,996-3,141 (Rs 3,000-3,141). Naka delivery rates: S-grade Rs 2,880 -2,910 (Rs 2,880-2,910) and M-grade Rs 2,970-3,040 (Rs 2,970-3,040).

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