Domestic demand for sugar is likely to ease further this month. It is also seen dropping next month as it happens generally, according to a trader in the Vashi wholesale market.

Since educational institutions reopen in June, consumers in the lower strata of the society would be looking to cut expenses. And sugar could be one of the first victims of such a decision, the trader said.

Meanwhile, sugar prices were range-bound on Friday. In the spot market, S-grade was unchanged, while M-grade rose by Rs 4 a quintal. In Naka delivery trade, M-grade lost Rs 10 on eased demand. Mill tender rates were up by Rs 10 on expectation of export move. The sugar market, at present, is passing through range-bound movement on routine local demand as it is the middle of the month, the trader said. Buying by neighbouring States is irregular and the world market is on a downtrend after India allowed unrestricted exports.

In Vashi market, arrivals were 52-53 truckloads and local dispatches were 49-50 truckloads. On Thursday, about 10-12 mills sold about 63,000-65,000 bags to local traders in the range of Rs 2,840-2,930 (Rs 2,830-2,930) for S-grade and Rs 2,940-3,010 (Rs 2,930-3,010) for M-grade.

The Bombay Sugar Merchants Association's spot rates were : S-grade Rs 2,952-3,012 (Rs 2,952-3,011) and M-grade Rs 3,036-3,171 (Rs 3,032-3,171). Nakadelivery rates : S-grade Rs 2,920 -2,970 (Rs 2,920-2,970) and M-grade Rs 2,980-3,060 (Rs 3,000-3,070).

Related Topics
comment COMMENT NOW