Indian sugar mills association

Covering purchases sweeten sugar

Date:	04 Apr 2012

Source:	The Business Line

Reporter:	Our Correspondent

News ID:	1023

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Mumbai, April 4: Sugar prices on the Vashi wholesale market increased Rs 10-20 a quintal on Wednesday on fears of lower arrivals due to continuous bank holidays. Naka rates improved by Rs10-15, while mill tender rates increased by Rs 20-40 on improved retail demand and higher buying interest for fine quality. The sentiment was firm as hot weather is likely to lead to a higher demand for sugar, said traders. Mr Mukesh Kuwadia, Secretary of the Bombay Sugar Merchants Association, said that the volume increased on Wednesday as retailers and stockists made covering purchases ahead of festival holidays. The market will remain closed on Thursday on account of Mahavir Jayanti. Arrivals and dispatches increased in line with higher demand. Maharashtra's mills are still up against lack of demand from neighbouring States. But soon, demand from Gujarat, Madhya Pradesh, Rajasthan and eastern States demand is expected to rise. Analysts said that as the current market price is not impressive for the mills, the sugar industry has demanded more exports on top of 30 lakh tonnes already permitted. ISMA expects yearly sugar production to be more than 260 lakh tonnes. The industry body believes that considering domestic consumption of 220 lakh tonnes, the country can export another 15 lakh tonne sugar. The Government has so far permitted 30 lakh tonnes exports this year. In world market, sugar futures ruled weak. Arrivals at the Vashi market were higher at 64-65 truckloads and dispatches were 62-63 loads. On Tuesday evening, about 17–18mills offered tenders and sold 68,000-70,000 bags in the range of Rs 2,720-2,820 (Rs 2,720-2,780) for S-grade and Rs 2,820-2,940 (Rs 2,800-2,900) for M-grade. The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 2,872-2,930 (Rs 2,862-2,922) and M-grade Rs 2,952-3,071 (Rs 2,951-3,051). Naka delivery rates: S-grade Rs 2,800 -2,860 (Rs 2,800-2,850) and M-grade Rs 2,900-3,010 (Rs 2,900-2,995).

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