Commodities

Rising supply from new cane crop drags sugar

| Updated on: Dec 16, 2013
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Selling pressure and ample stocks at producer end and in markets kept sugar prices on leash on Monday.

Prices in other producing centres ruled at a par with Maharashtra.

It dampened upcountry buying and forced producers to sell in local markets, said sources.

On the Vashi wholesale market, prices ruled stable with prices rising or dropping in line with quality. Naka rates were unchanged.

Mill tender rates were down by Rs 10-15 a quintal for old stock on weak demand, said sources.

Jagdish Rawal of B. Bhogilal & Co told Business Line : “There is a wide price gap (about Rs 100-250) between S and M- grade. It is expected to narrow in the coming days due to routine demand and more supply of sugar from the new crop. New supply from mills is on the rise and producers are keen to ease ease their inventories.”

The Vashi market carries about 110-115 truckloads of stocks.

Arrivals market continued to be at 61-62 loads (of 100 bags each) while local dispatches were 59-60 truck loads.

On Saturday, 16-17 mills sold 48,000-50,000 bags at Rs 2,650-2,750 (Rs 2,660-2,750) for S-grade and Rs 2,750-2,970 (Rs 2,750-2,980) for M-grade. New M-grade was sold at Rs 3,000-10.

Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 2,872-3,022 (Rs 2,860-3,022) and M-grade Rs 2,986-3,222 (Rs 2,990-3,222).

Naka delivery rates were: S-grade Rs 2,820-2,920 (Rs 2,820-2,920) and M-grade Rs 2,940-3,135 (Rs 2,940-3,135).

Uttar Pradesh rates were: Muzzafarnagar Rs 3,220.

Published on December 16, 2013

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