Sugar prices at Vashi market on Thursday continued to decline for the fourth consecutive day on less-than-expected demand. Upcountry reports were also bearish. Prices declined by Rs 8-10 at spot, naka and mill levels. Premium quality sugar rose by Rs 5 a quintal. In the absence of active participation of bulk consumers and big stockists, mills were under pressure to sell at lower rates, as due date for last month's carryover stocks approaches. Morale was weak. Volume was at its usual low level.

The Government has declared 16.84 lakh tonnes normal free-sale quota. It includes 3.5 lakh tonnes carryover of February-11 free-sale quota with 15 days extension. Mr Jagdish Rawal, Joint Secretary of Bombay Sugar Merchants Association, told Business line : “So far as stockists are concerned, increased lifting pressure for March 10 and March 15 due date purchases kept them away from fresh buying. Market has been witnessing need-based trades since January 11. The country's sugar production is expected between 240-245 lakh tonnes in the current season of 2010-2011, and domestic demand will be around 225-230 lakh tonnes. Traders are expecting local consumption demand to increase for Holi festival from next week.

Arrivals in the markets were as usual at about 52-53 truck loads (each of 100 bags), and local dispatches were at 45-46 truck loads. About 14-15 mills by tender offer sold about 30,000-35,000 bags only at Rs 2,670-2,710 for S-grade and Rs 2,720-2,780 for M-grade. Morale at the mill level was steady, as the mills were not keen to sell bulk at lower price.

Bombay Sugar Merchants Association spot rates: S-grade Rs 2,811-2,851 (Rs 2,801-2,856) and M-grade Rs 2,846-2,916 (Rs 2,841-2,916).

Nakadelivery rates: S-grade Rs 2,760-2,780 (Rs 2,760-2,790) and M-grade was Rs 2,800-2,860 (Rs 2,810-2,850).

Related Topics