Sugar prices in the Vashi wholesale market ruled weak on Tuesday on limited demand and ample supply. In the futures market, prices extended further loss in absence of positive cues. In spot, prices dropped by Rs 10 a quintal. Naka rates ruled unchanged. Mill tender rates declined by Rs 10 on need-based demand. The volume was routine at both upper – mill and lower- market level.

A trader said: “The loading – unloading was stopped till 1 p.m. on meeting called by Mathadi Kamgar Union to protest against the State Government’s move to change the Kamgar’s laws”.

“As market carries ample inventories traders kept away from fresh buying. Reports of possible hike in sugar price in the public distribution scheme (PDS) will only support producers but not the market price” he said.

Analyst said domestic sugar prices started falling after Diwali on lacklustre demand and higher selling by mills trying to raise cash to pay farmers.

Sugar crushing is going on in full scale and mills have to pay farmers for cane. On export front also, current prices are not in favour of India.

In Vashi market, arrivals were 6-62 truck loads (each of 100 bags) while dispatches were 60-61 truck loads. On Monday evening about 18-20 mills offered tenders and sold about 64,000-65,000 bags (each of 100 kg) at Rs 3,120-3,170 (Rs 3,130-3,180) for S-grade and Rs 3,240-3,280 (Rs 3,240-3,290) for M-grade.

On National Commodities and Derivatives Exchange, sugar prices for February futures drop to Rs 3,259 (Rs 3,268), March to Rs 3,285 (Rs 3,294) and April Rs 3,339 (Rs 3,342) till noon.

The Bombay Sugar Merchants Association’s spot rates were: S-grade Rs 3,266- 3,342 (Rs 3,266-3,326) and M-grade Rs 3,352-3,482 (Rs 3,346-3,491). Nakadelivery rates were: S-grade Rs 3,230-3,260 (Rs 3,230-3,260) and M-grade Rs 3,280-3,420 (Rs 3,280-3,420).

Published on January 8, 2013