Sugar price fluctuated on Monday, after selling pressure to meet delivery commitments for May 5 gripped the market.

At mills level, the sentiment continued to be firm as some fresh buying inquiry from neighbouring States, along with local demand for the month beginning, increased.

The market appears to be in grip of bullish run on hopes of better demand for summer.

Spot sugar prices on the Vashi wholesale market declined by Rs 4-5 a quintal in line with correction in Naka rates on resale selling pressure, said traders.

Mr Jagdish Rawal of B.Bhogilal and Co said: “The Government has declared total 19.63 lakh tonnes of sugar (levy sugar – 2.13 lakh tonnes and free sale sugar – 17.50 lakh tonnes) for May.

The May quota includes 15.45 lakh tonnes normal quantity which is less than that for April.”

Arrivals and dispatches increased on fresh demand in retail outlets and rail rake buying.

According to traders, about 28-30 mills offered tenders and sold about 1-1.25 lakh bags (100 kg each) sugar to local stockists as well as to neighbouring States in the form of rail rake in the range of Rs 2,630-2,680 for S-grade and Rs 2,705-2,775 for M-grade.

Mill tender rates were showed a firm trend. Arrivals in the market were higher at about 60-62 truckloads (each 100 bags) and local dispatches were 55-56 truckloads.

The Bombay Sugar Merchants Association sugar rates were : Spot: S-grade Rs 2,751-2,800 (Rs 2,756-2,806) and M-grade Rs 2,801-2,911 (Rs 2,801-2,911).

Naka delivery: S-grade Rs 2,720-2,750 (Rs 2,730-2,760) and M-grade Rs 2,770-2,860 (Rs 2,775-2,860).

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