Indian sugar mills association

Additional export move sweetens sugar

Date:	28 Mar 2012

Source:	The Business Line

Reporter:	BL Correspondent

News ID:	1015

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Mumbai, March 27: An announcement of allowing an additional 10 lakh tonnes sugar exports in the current season ending September by the Empowered Group of Ministers (EGoM) improved the sentiment in physical market. Sugar prices at the national level rose by Rs 10-.20 a quintal on Tuesday. In the Vashi wholesale market, spot price increased by Rs 10-20. Maharashtra's producers got good responses from buyers at Rs 10-15 higher tender rates with improve volume. Taking firm note at the upper level, naka rates also increased by Rs 10. Mills sold nearly 1–1.25 lakh bags on Monday evening. Mr Jagdish Rawal, a wholesale trader, said market improved after EGoM meeting decided to allow additional 10 lakh tonnes exports this year on top of the 20 lakh tonnes already approved. Monday's announcement will arrest any price decline in open market. With the new month starting in a couple of days, retail and bulk demand is also expected to improve. Further, the Government may come up with a free sale quota for April that could further boost the sentiment. Sugar futures also rose in line with firm spot market he said. In the domestic market, traders are expecting a higher free sale quota for April due to onset of summer when demand for cool drinks increases. For March, the Government has allocated a total of 13.50 lakh tonnes free sale quota. Arrivals in the Vashi market were about 51-52 truckloads and local dispatches were 49-50 loads. On Monday evening, 20-22 mills sold about 1–1.25 lakh bags in the range of Rs 2,715-2,780 (Rs 2,700-2,770) for S-grade and Rs 2,790-2,880 (Rs 2,790-2,870) for M-grade. The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 2,872-2,925 (Rs 2,850-2,925) and M-grade Rs 2,941-3,041 (Rs 2,941-3,042). Naka delivery rates: S-grade Rs 2,820-2,870 (Rs 2,810-2,860) and M-grade Rs 2,920-3,000 (Rs 2,910-2,990).

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