Indian sugar mills association

Sugar steady despite need-based offtake

Date:	21 Mar 2012

Source:	The Business Line

Reporter:	Our Correspondent

News ID:	1003

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Nlink:	http://www.thehindubusinessline.com/markets/commodities/article3016899.ece?ref=wl_investment-world

Mumbai, March 20: Spot sugar prices on the Vashi wholesale market ruled steady on Tuesday despite need-based local demand. Naka rates were unchanged tracking steady trend at the upper level. Mill tender rates for M-grade were down Rs 10 on the higher side, while for S-grade ruled steady. A wholesaler said due to the financial year ending and month-end volume at upper mill level was thin. Few mills offered tenders on Monday evening. Moreover, demand from stockists was low. Arrivals higher than demand added to inventory pressure. He said higher production (14 per cent higher till March 15) and continuous absence of demand from neighbouring States in Maharashtra is forcing producers to sell locally. Further, as announcement of next month's free-sale quota is also due, most players preferred to keep away from new bulk buying. For January, February and March, the Government has steadily reduced the quota to stabilise prices. Arrivals in Vashi were about 50-51 truckloads and despatches about 44-45. On Monday evening, about 12-13 mills offered tenders and sold about 28,000-30,000 bags at Rs 2,710-2,780 (Rs 2,710-2,780) for S-grade and at Rs 2,800-2,880 (Rs 2,800-2,890) for M-grade. Bombay Sugar Merchants Association's spot rates: S-grade Rs 2,862-2,946 (Rs 2,862-2,946) and M-grade Rs 2,951-3,042 (Rs 2,981-3,042). Naka delivery rates: S-grade Rs 2,800-2,850 (Rs 2,800-2,850) and M-grade Rs 2,930-3,000 (Rs 2,930-3,000).

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