Indian sugar mills association

Higher supply could keep sugar on leash

Date:	05 Jun 2013

Source:	The Business Line

Reporter:	BL Correspondent

News ID:	2314

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Mumbai, June 4: Sugar prices on the Vashi wholesale were mixed trend on Tuesday even as the undercurrent was firm, sources said. Prices for S– grade increased by Rs 35 at the lower end, while it declined by Rs 21 a quintal at the higher end. The M-grade dropped by Rs 10. Naka rates increased by Rs 10 for S-grade and ruled unchanged for the M-grade. Mill tender rates were steady as producers continued selling on routine demand. A wholesaler said that as long as supply outstripped demand, sugar prices will remain under pressure. Demand at the beginning of the month improved but continuous supply from producers and sufficient inventory(more than 100 truckloads in the market) kept stockists away from fresh bulk bets. Due to the higher production, sugar prices have declined by over Rs 200 in Vashi since January this year. In the Vashi market on Tuesday, arrivals were about 63-64 truckloads (each 100 bags) and local dispatches were around 62-63 loads. On Monday, about 18- 20 mills offered tenders and sold 68,000-70,000 bags to local traders at Rs 2,930-2,990 (Rs.2,920-Rs2,990) for S-grade and Rs 3,000-Rs 3,090 (Rs 3,000- 3,090) for M-grade. In the domestic futures market, sugar prices extended gains for the third consecutive day on expectations of higher festival demand in the coming months. On the National Commodities and Derivatives Exchange, July futures were higher at Rs 3,089 (Rs 3,088), August by Rs 4 at Rs 3,139 (Rs 3,135) and September inched up by Rs 8 at Rs 3,181 (Rs 3,173) till noon. The Bombay Sugar Merchants Association’s spot rates: S-grade Rs 3,080– Rs 3,130 (Rs 3,046– Rs 3,151) and M-grade Rs 3,152-3,331 (Rs 3,162- 3,341). Naka delivery rates: S-grade Rs 3,030 -3,070 (Rs 3,020-3,060) and M-grade Rs 3,100-3,200 (Rs 3,100-3,200).

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