Commodities

Retail offtake hopes boost sugar

Our Correspondent Mumbai | Updated on January 28, 2011

BL29_COM2_SUGAR

Spot sugar prices on the Vashi wholesale market on Friday, bounced back slightly on expectation of fresh retail demand for new month and decreased selling pressure at naka level.

Spot prices were up by Rs 2-5 a quintal. Naka prices shot up by over Rs 25-30 due to easing of selling pressure in resale. Mill tender rates went up by Rs 15 in the evening.

Most of the market players were eagerly awaiting the Government's announcement on the new month's sugar quota. Volume was as usual, said traders.

During the whole of this month, absence of retail demand has resulted in thin volumes. Moreover out of the current month's 17 lakh tonnes of free sale quota, about 30 per cent of the quantity remained unsold at the mill level. Mills, which are carrying largeinventories, have made a representation to the Government.

Now the traders and stockists are awaiting Government announcement, which is keeping them away from fresh bulk buying. About 14-15 mills floated the tender offer and sold about 24,000-25,000 bags of sugar in the range of Rs 2,710-2,750 a quintal for S-grade and Rs 2,740-2,790 for M-grade.

Most of the mills kept offer open slightly higher by Rs 5-10. Arrivals in the markets were about 40-42 truckloads (each 10 tonnes) and local dispatches were about 38-40 truckloads.

According to the Bombay Sugar Merchants Association, spot rates were: S-grade Rs 2,821-2,872 (Rs 2,821-2,871) and M-grade Rs 2,876-2,931 (Rs 2,871-2,931).

Naka delivery rates were: S-grade Rs 2,800-2,830 (Rs 2,770-2,800) and M-grade Rs 2,850-2,870 (Rs 2,795-2,850).

Published on January 28, 2011

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