Comments
Spot sugar prices at Vashi market showed a marginally positive trend on Tuesday, with an increase of Rs 5 in spot and Rs 8-10 in Naka delivery.
Mill tender rates ruled steady with higher production and less than expected demand. Arrivals and dispatches were at the usual level, keeping volume and morale positive. Freight rates were steady at the higher level. Some upcountry buying by States was also witnessed, said traders.
Mr Jagdish Rawal of B. Bhogilal and Co, of Vashi market, said, the Government has declared 17 lakh tonne free sale sugar quota for April-11, including one lakh tonne carry forward of last month.
According to reports, from October to March-11 end, India's sugar production was 24 per cent higher at 205 lakh tonne, compared with 165 lakh tonne in the same period last year.
Market players are expecting the country's sugar production to be between 248 and 250 lakh tonnes in the current season year 2010-11.
Maharashtra is expected to produce 94-95 lakh tonnes and Uttar Pradesh's sugar output will be 63-64 lakh tonnes. The current month's 17-lakh-tonne normal free sale quota is sufficient to meet the demand.
But with temperatures rising, sugar consumption is set to rise. Sugar price in the futures market also showed a steady trend with range-bound movement, with higher production and lower demand till now keeping speculators/button players away from big deals.
On Monday due to Gudi Padawa festival few 10-12 mills offered tenders and sold about 70,000-75,000 bags (100 kg each) including one rail rake of sugar in the range of Rs 2,660-2,690 for S grade and Rs 2,700-2,750 for M grade.
Today mills kept tender offer open in the same price range. Arrival in the markets was 54-55 truck loads (of 100 bags each) and local dispatches were at 52-53 truck loads.
Bombay Sugar Merchants Association sugar rates:
Spot rates: S grade Rs 2,786-2,831 (Rs 2,781-2,831) and M grade Rs 2,831-2,921 (Rs 2,831-2,921).
Naka delivery rates: S grade Rs 2,730-2,780 (Rs 2,750-2,770) and M grade was Rs 2,790-2,875 (Rs 2,780-2,860).
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.