Sugar prices on the Vashi wholesale market increased marginally with spot rates rising by Rs 5/quintal for S-grade and Rs 15 for M-grade on Wednesday.
Naka and tender rates rule steady as an easy supply position continued amidst normal sales by mills. Tender rates for S-grade continue to rule below Rs 2,600. Arrivals and dispatches were at usual level and that kept the volume stagnant. A broker of Vashi market said that at current low price level, sugar mills are not eager to sell considering the higher cost of production. On the other hand, despite summer having commenced, the demand is yet to pick up. . Even neighbouring States are inactive in buying. Mills are selling since they need liquidity on hand.
Pressure for exhausting current month's free sale quota before due date has put the mills in a desperate situation.
According to traders, there is still good amount of unsold quota. Inventories in the market have increased in the last 15 days. Market players expect next month's quota will be higher since the Government is worried about inflation. At domestic level, about 24-25 mills offered tenders and sold about 40,000-45,000 bags (100 kg each) to local stockists at Rs 2,590-2,630 for S-grade and Rs 2,650-2,720 for M-grade. Most mills kept their tender offer open. Arrivals were higher at about 50-51 truckloads (each 100 bags) and local dispatches were 45-46 truckloads.
The Bombay Sugar Merchants Association sugar rates : Spot: S-grade Rs 2,740-2,765 (Rs 2,731-2,800) and M-grade Rs 2,760-2,891 (Rs 2,746-2,886).
Naka delivery rates : S-grade Rs 2,690-2,730 (Rs 2,690-2,730) and M-grade was Rs 2,750-2,830 (Rs 2,750-2,830).