Sugar prices on Vashi market declined by Rs 30-40 a quintal on Friday due to lack of local demand in month-end. Prices shot up by Rs 80-100 previous day to a record high leading to pressure on demand. Fear of government steps to control prices of essential commodities weighed on sentiment. Spot prices dropped by Rs 25-30 tracking a loss of Rs 30-40 at upper Naka and mill level. Selling pressure on producers for completing of 30 per cent of July – September free sale quota of 45 lakh tonnes was lifting pressure on traders – stockists who have covered in advance leading fresh bulk buying at bay. Stockists were cautious.

A Vashi-based wholesaler said that release of 2.66 lakh tonnes of additional free sale quota by converting levy in to free sale may not prove positive as expected because in that responsibilities of Maharashtra mills is to be seen, if the liabilities on state’s mills are minimal than there will be no much effect on the local market. In Vashi market arrivals were 54 - 55 truckloads and local dispatches were 50-52 loads.

On Thursday evening only 10 -12 mills offered tenders and sold about 35,000 – 40,000 bags ( of 100 kg each) to the local stockists in the range of Rs 3,330-3,400 (Rs 3,370-3,440) for S-grade and Rs 3,410-3,390 (Rs 3,450-3,520) for M-grade.

Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,461-3,525 (Rs 3,491-3,542) and M-grade Rs 3,500- 3,601 (Rs 3,532- 3,631). Nakadelivery rates: S-grade Rs 3,450 -3,480 (Rs 3,480 -3,520) and M-grade Rs 3,490-3,550 (Rs 3,520-3,580).

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