Comments
Sugar prices ruled steady in spot trade in the Vashi wholesale market on Friday with minor changes depending upon the quality. However, the undertone was firm on the expectation that today's meeting of the empowered group of ministers (EGOM) would decide on the additional quantity for export.
Mill tender rates jumped by Rs 20/Rs 25 a quintal on good buying support. It led the naka rates to gain by Rs 15/Rs 20 per quintal. The morale was firm with the market awaiting an announcement regarding additional export quantities.
A wholesaler said, “The demand from retail shopkeepers was higher before the market closes for three days from Saturday. The demand from other centres in the State has improved; buyers from the neighbouring States are also active as prices are higher in other producing centres. Arrivals and dispatches in the market were higher. The announcement of additional export quantities will fuel a further price rise.”
This year, India's sugar production is expected at 242 lakh tonnes as against 190 lakh tonnes last year. Domestic consumption, estimated at 220-225 lakh tonnes this year, will lead to additional sugar stocks being available for exports. Further, the sector is expecting a further increase in production at 260-265 lakh tonnes next year also, tracking the higher sowing this year.
Market sources said mills hold the price on expectations of higher domestic demand in the coming festival season and higher export permission. On Thursday, Maharashtra's mills sold more than one lakh bags of sugar to State-level buyers. Good quality sugar was sold higher by Rs 20/Rs 25. Confectionery, snack and sweet-makers were active buyers. In the world market, the white sugar October-11 futures price was up by $25.90 at $749.70 ($723.80) per tonne.
At the domestic level, 20-22 mills offered tenders and sold 1.20-1.25 lakh bags (each of 100 kg) at Rs 2,600/Rs 2,670 (Rs 2,590/Rs 2,640) for ‘S' grade and Rs 2,670/Rs 2,750 (Rs 2,640/Rs 2,750) for the ‘M' grade. Arrivals in the market increased stood at 58-60 truck loads (each of 100 bags) and local dispatches stood at at 54-55 truck loads. The freight rates were steady.
The Bombay Sugar Merchants' Association sugar rates:
Spot rates: S grade Rs 2,716/Rs 2,855 (Rs 2,716/Rs 2,865) and M grade Rs 2,781/Rs 2,951 (Rs 2,791/Rs 2,961).
Naka delivery rates: S grade Rs 2,670/ Rs 2,730 (Rs 2,660 /Rs 2,710) and M grade Rs 2,750/ Rs 2,870 (Rs 2,750/ Rs 2,880).
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.