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Spot sugar prices at Vashi market ruled steady on Friday on the heels of fresh retail buying. Naka rates, under selling pressure, declined by Rs 10 a quintal as mills reduced tender rates.
Arrivals and dispatches were on par because of increase in local demand. Next week, more selling pressure may be seen at mill level as current month's free sale quota's validity is due to end.
Mr. Jagdish Rawal, Joint Secretary of Bombay Sugar Merchants Association, told Business Line : “Some resale selling pressure at naka level was because some mills have started selling at reduced price. The current month's free sale quota's ending next week will add to the pressure.
“According to market talk, still a good amount of quota is still available for sale. How much quantity the government declares for next month's free sale quota is to be seen. For current month, total 17 lakh tonnes was quota sugar, higher than 16.84 lakh tonnes for March and 16.23 lakh tonnes for February.”
Analyst said that in February and March, large unsold stocks of monthly quota were carried over due to absence of demand; but in April with the crushing season coming to end and the start of summer demand have reduced that burden considerably. In the current month, only one lakh tonnes of the previous month's stocks was included as carryover against 3 lakh tonnes and 3.50 lakh tonnes, respectively in February and March.
On Thursday, merely 28-30 mills offered tenders and sold about 65,000-70,000 bags (100 kg each) to local stockists in the range of Rs 2,625-2,670 for S-grade and Rs 2,675-2,750 for M-grade.
In Vashi market, arrivals were about 50-52 truckloads (each 100 bags) and local dispatches were 46-48 truckloads. Gujarat and Rajasthan's buying was limited and it was stagnant in Maharashtra.
Bombay Sugar Merchants Association sugar rates: Spot rates: S-grade Rs 2,751-2,810 (Rs 2,752-2,810) and M-grade Rs 2,796-2,901 (Rs 2,791-2,901).
Naka delivery rates: S-grade Rs 2,710-2,740 (Rs 2,720-2,750) and M-grade Rs 2,760-2,860 (Rs 2,770-2,850).
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