Sugar rules steady; mills await festive season

Our Correspondent Mumbai | Updated on July 20, 2011 Published on July 20, 2011

A worker spreads the sugar granules over conveyer belt with a spade at a sugar mill (file photo): Akhilesh Kumar

Sugar prices rule steady on Wednesday. Business activities were as usual with routine arrivals and dispatches. There were no signs of demand, while, on the other hand, mills are not keen to sell, expecting higher price.

Need-based retail demand eased leading to drop in spot price by Rs 4-5 a quintal, while lack of sales led to rise in naka rates by Rs 20-30 a quintal. Mill tender rates were almost unchanged. With weather clearing up, retail demand is expected to improve to some extent. Mr Mukesh Kuwadia Secretary of Bombay Sugar Merchants Association, said, tracking a steady trend at higher level, spot market sentiment was steady. Mills are not keen to sell at lower price and are holding the price by keeping tender offers open. With the festival season starting in August, demand is expected to increase and, in turn, support the price.

A wholesaler said on Tuesday about 28-30 mills had offered tenders and sold 95,000-1,00,000 bags (100 kg each) to States level stockists in the range of Rs 2,665-2,720 (Rs 2,665-2,720) for S-grade and Rs 2,750-2,820 (Rs 2,750-2,820) for M-grade. Transport freight rates were steady.

Arrival on the Vashi wholesale market was 50-52 truckloads (each 100 bags) and local dispatches were 48-50 truckloads.

The Bombay Sugar Merchants Association sugar rates were: Spot: S-grade Rs 2,791-2,842 (Rs 2,795-2,842) and M-grade Rs 2,851-2,986 (Rs 2,856-2,986).

Naka delivery rates: S-grade Rs 2,750-2,790 (Rs 2,730-2,760) and M-grade Rs 2,820-2,950 (Rs 2,800-2,930).

Published on July 20, 2011
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