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Sugar prices rose further to touch a three-week high on Vashi terminal market.
On Thursday, prices rose for the third consecutive day, by Rs 15-20 a quintal at the mill level, in anticipation of supportive Government measures such as permission to export more, levy on imports, removal of stock limit and time limit, and so on.
As the crushing season draws to a close the policy changes are expected to improve demand, sentiment and result in higher dispatches from mills to lower the price.
With the sudden spurt in price and demand capped, the ready market witnessed a slower price rise. Arrivals outpaced demand. However, the sentiment was steady with improvement at the upper price level. Until noon on Thursday, sugar futures had risen by Rs 30-32 on commodity exchanges. In the physical market, prices had risen by Rs 25-30 in spot, and naka prices shot up by Rs 40-50 after the mills hiked tender rates. M-grade grabbed the limelight among the buyers.
Mr Jagdish Rawal, a wholesaler at Vashi market, said that in the past three days sugar futures prices had shot up by Rs 80-90 compared with Rs 40-50 in the spot market. Talk of market support for the ailing sugar sector has improved the overall sentiment. This month, the mills have reportedly sold well in the domestic markets even at below parity, easing the pressure of desperate sales they faced during February to May to meet the allotted quota before due date. Mills in Maharashtraoffered tenders and sold to local traders about 1.2-1.25 lakh bags at Rs 2,470-2,550 a bag for S- grade, and Rs 2,550-2,690 for M-grade. Upcountry buyers were interested in lower rates. Arrival in the market stood at 49-50 truckloads (100 bags each) and local dispatches were lower at 44-45 truckloads.
Bombay Sugar Merchants Association rates: Spot rates: S-grade Rs 2,626-2,666 (Rs 2,601-2,651) and M-grade Rs 2,691-2,831 (Rs 2,661-2,811).
Nakadelivery rates : S grade Rs 2,600-2,650 (Rs 2,560-Rs 2,610) and M grade was Rs 2,670-2,750 (Rs 2,625-2,700).
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