Indian sugar mills association

Summer demand sweetens sugar

Date:	16 Apr 2011

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News ID:	18

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Sugar appears to be entering the positive zone as prices at the mill level continued to rule firm on Friday. Fresh local buying in Vashi markets, limited the decline of Rs 5 in spot as mills continued to offer tender at current rates with Rs 5 /Rs 10 gain or loss. In line with tender rates, naka rates were under pressure. After a big gap, fresh trade of three-four rail rakes with neighbouring States took place, providing a further boost to to firm sentiment. Arrivals and dispatches were at a par on increase demand. Local stockists have now started inventory buying too. Mr Jagdish Rawal, a wholesaler, said sugar is now witnessing active business on higher consumption demand for summer. As the crushing season is coming to an end next month, stockists have taken to inventory buying. Mills are getting good response from buyers locally and in neighbouring States. This week, the volume of trade was good. On Thursday, about 26-28 mills came with tender offer and sold about 1.25- 1.50 lakh bags (100 kg each) of sugar in the range of Rs 2,620-2,660 for S-grade and Rs 2,670-2,760 for M-grade, including 3-4 rail rakes (each 27,000 bags) bought by eastern side buyers. In the coming days, buying is expected from other centres in Maharashtra. Gujarat and Rajasthan are buyers for better quality sugar from Maharashtra as prices are ruling firm in the North. At the Vashi market, arrivals were 58-60 truckloads (each 100 bags) and local dispatches were 56-58 truckloads, said Mr Rawal.The Bombay Sugar Merchants Association sugar spot rates (in Rs/quintal): Spot: S-grade 2,751-2,821 (2,751-2,825) and M-grade 2,791-2,901 (2,792 -2,911). Naka delivery rates: S-grade 2,730-2,750 (2,730-2,760) and M-grade 2,765-2,860 (2,770-2,850).

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