Indian sugar mills association

M-grade sugar sold at discount to clear stocks

Date:	15 Mar 2012

Source:	The Business Line

Reporter:	BL Correspondent

News ID:	1000

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Mumbai, March 14: Sugar prices ruled steady at all levels on Wednesday in Maharashtra. At the Vashi wholesale market, routine demand and ample supply kept the sentiment slightly weak at the end of the day. Traders sold fair quality M-grade at a discount of Rs 20 a quintal in ready market to avoid inventory pressure. Naka and mill tender rates ruled steady. Mr Mukesh Kuwadia, Secretary of Bombay Sugar Merchants Association, said, that production estimate remained a cause for worry. Sugar industry estimates production at 260 lakh tonnes, while Government data put the number at 247 lakh tonnes. In view of higher output estimates during 2011-12, the Centre has already allowed export of 20 lakh tonnes in two tranches of 10 lakh tonnes during November 2011 and February under the open general licence. Now, producers are demanding that an additional 10 lakh tonnes exports be allowed. He said that considering 227 lakh tonnes for domestic consumption and exports of 20 lakh tonnes (Already permitted) total comes to 247 lakh tonnes. If we consider the Governments estimate, there could be no additional surplus at the end of the season except last years carryover stock, which is around 45-50 lakh tonnes. It will meet requirement of two months domestic consumption. A clear picture of current year production will be known after April 15, Mr Kuwadia said. Arrivals at the Vashi market were about 50-51 truckloads and dispatches were about 47-48 loads. On Tuesday, about 20-22 mills sold about 38,000-40,000 bags in the range of Rs 2,730-2,800 (Rs 2,730-2,800) for S-grade and Rs 2,830-2,900 (Rs 2,830-2,900) for M-grade. The Bombay Sugar Merchants Associations spot rates:S-grade Rs 2,876-2,962 (Rs 2,876-2,962) and M-grade Rs 2,941-3,061 (Rs 2,966-3,061). Nakadelivery rates:S-grade Rs 2,820-2,860 (Rs 2,820-2,860) and M- grade Rs 2,920-3,000 (Rs 2,920-3,000).

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