Spot sugar prices on the Vashi wholesale market continued to rule steady for the second day. S-grade normal quality sugar fell by Rs 5 a quintal, even as other grades ruled firm. Naka delivery rates declined Rs 5-10 on higher selling in resale as traders fulfilled their commitments on Friday.

Mills' tender rates for quality sugar moved between Rs 5 and Rs 7. Mills kept tender offer open on poor response. Freight rates quoted higher because of shortage of trucks in Kolhapur and Karad in Maharashtra.

Mr Harakhchand Vora, Vice-President of Bombay Sugar Merchants Association, said there was no improvement in local demand, as expected, and stockists were still offloading the old stock, keeping away from fresh buying. Millers are selling, but they are not ready to sell at lower rates. The volume is normal. Because of stagnant demand, prices have remained stable and volume unchanged in the last few days. Traders are staying away from bulk buying.

On Thursday evening about 14-15 mills came up with tender offer and sold about 65,000-70,000 bags of sugar at Rs 2,705-2,735 a quintal for S-grade and Rs 2,735-2,780 a quintal for M-grade. Resellers were busy fulfilling commitments for February 5-10. There was no demand from neighbouring States too.

Arrivals

Arrivals at the Vashi markets were about 47-48 truckloads (each 100 bags), and local dispatches were about 44-45 truckloads. According to the Bombay Sugar Merchants Association spot sugar rates were: S grade — Rs 2,831-2,871 (Rs 2,836-2,871) and M grade — Rs 2,862-2,951 (Rs 2,862-2,951). Naka delivery rates were: S grade — Rs 2,770-2,810 (Rs 2,780-2,820) and M grade — Rs 2,820-2,890 (Rs 2,830-2,895).

comment COMMENT NOW