Spot prices on the Vashi wholesale sugar market were mixed on Tuesday. In the physical market, price for S-grade increased by Rs 2-10 a quintal, while for M-grade, it declined by Rs 10. Naka prices ruled unchanged. Mill tender rates were up by Rs 10-20 a quintal as sale tenders for new sugars were quoted higher by producers.
Routine local demand and continuous supply from mills kept sentiments steady. Sugar futures dropped by Rs 10-15 till noon, tracking bearish foreign markets, said sources.
A Vashi-based wholesaler said: “In the absence of any positive cues, sentiments in physical markets continued to be dull as supplies from producers are ample. Despite this, they quoted higher prices for new season sugar, stockists continued their new buying according to the need and local demand. Neighbouring states buying is missing in Maharashtra since the last two months forcing producers to concentrate on local markets.
Prices in other producing centres are ruling at par with Maharashtra. Inventory stocks in the Vashi market is about 100-110 truck loads”.
Meanwhile in the first three-and-a-half months of the season beginning October, sugar production rose three per cent to 10.8 million tonnes a leading industry body said last week.
Output between Oct. 1 and Jan. 15 in Maharashtra was at 3.77 mt, followed by Uttar Pradesh 2.75 mt, the Indian Sugar Mills Association said.
In the Vashi market, arrivals were 61-62 truck loads (each of 100 bags) and local dispatches were 58-60 truck loads.
On Monday evening, about 10-12 mills sold about 58,000-60,000 bags (each of 100 kg) in the range of Rs 3,130-3,180 (Rs 3,120-3,160) for S-grade, and Rs 3,240-3,290 (Rs 3,220-3,280) for M-grade.
On the National Commodities and Derivatives Exchange, sugar prices for February futures declined to Rs 3,243 (Rs 3,258); March to Rs 3,282 (Rs 3,291) and April at Rs 3,326 (Rs 3,333).
The Bombay Sugar Merchants Association’s spot rates: S-grade Rs 3,242- 3,322 (Rs 3,240-3,312) and M-grade Rs 3,331-3,452 (Rs 3,331-3,462). Naka delivery rates were: S-grade Rs 3,220-3,260 (Rs 3,220-3,260) and M-grade Rs 3,260-3,400 (Rs 3,260-3,400).