The Centre's nod for five lakh tonnes sugar export under open general licence on Tuesday late evening lifted sugar prices. State-level mills increased tender rates by Rs 20. Accordingly, naka and spot rates also gained sharply. Prices jumped nearly Rs 20-25 at all levels even as the physical remained closed on Wednesday because of Anna Patil Punyatithi . Morale was bullish, in line with the mill offerings, said traders.

Mr Jagdish Rawal of B. Bhogilal and Co. said as the physical market was closed on Wednesday, there were no ready fresh trades and dispatch in the market. Arrivals from the sugar factories were also insignificant because of the holiday. On Tuesday evening, about 12-13 mills had offered tenders at higher rates and managed to sell about 1-1.25 lakh bags to traders and stockists at the State. Rake-buying from neighboring States is still lagging. Mills offloaded sugar at Rs 2,685-2,725 for S-grade and Rs 2,735-2,775 for M-grade. Other producing States/centres also rose Rs 20-25. Bullish sentiment prevailed at mill and market levels.

Sugar prices were pressed by a surplus since the calendar year began. After the announcement for sugar exports, the market is waiting for the decision on free quota for April, which is to be announced soon.

Spot rates: According to market sources, spot sugar prices were ruling at Rs 2,800-2,840 a quintal (Rs 2,781-2,815) for S-grade and Rs 2,840-2,925 (Rs 2,821-2,901) a quintal for M-grade.

Nakadelivery rates: S-grade Rs 2,770-2,790 (Rs 2,750-2,780) and M-grade Rs 2,820-2,875 (Rs 2,800-2,860).

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