Indian sugar mills association

Sugar mills hold stocks on festival demand hopes

Date:	07 Mar 2013

Source:	The Business Line

Reporter:	BL Correspondent

News ID:	2376

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July 2, 2013: Sugar prices increase by Rs5- Rs7 for fine variety while drop by Rs3-Rs5 for fair quality at Vashi market on Tuesday. Naka rates were mixed but under current was firm tracking firm sentiment at mill level. Mills in Maharashtra hold the price as they think prices will improve from the current level due to lower production next year and higher festival demand. Mill tender rates were up by Rs5-Rs20. Producers were not eager to sell at lower price. Sugar futures prices erased previous day’s gain by Rs10-Rs15 till noon of profit booking selling said sources. Mr. Jagdish Rawal of B. Bhogilal and co, said “Market still witnessed routine demand and ample supply. As of now retail demand is need based but is expected to rise coming days due to Ramdan and Ashadhi Ekadashi festivals. Producers are continuously selling in local markets in absence of neighboring states buying. Prices in other centers rule par with Maharashtra due to slack demand. Vashi market currently carries about 120 – 125 truck loads which is more than enough”. Observer said “Previous day on report of Indian traders have signed deals for exports of 75,000 tonnes of white sugar, after the rupee's depreciation and with strong demand in Gulf and African states sugar futures prices gained by Rs14-Rs16 but could not sustain trend on profit booking”. Arrivals at Vashi market were about 64 – 65 truck loads (Each of 100 bags) while local dispatches were 62 – 63 truck loads. On Monday about 8 – 10 mills offered tenders and sold about 18000 – 20000 bags at Rs2925 – Rs2990 (Rs 2,920-2,980) for S-grade and Rs3020 – Rs3110 (Rs 3,000-Rs 3,090) for M-grade. On National Commodities and Derivatives Exchange sugar August -13 futures drop by Rs14 to Rs 3,047 (Rs 3,061), September lower by Rs15 to Rs 3,090(Rs 3,105) and October declined by Rs8 to Rs 3,120 (Rs 3,128) till noon. Bombay Sugar Merchants Association's spot rates were: S-grade Rs 3,060– Rs 3,135 (Rs 3,062– Rs 3,135) and M-grade Rs 3,182 - 3,291 (Rs 3,184- 3,296). Naka delivery rates were: S-grade Rs 3,010 -3,060 (Rs 3,010-3,050) and M-grade Rs 3,110-3,200 (Rs 3,120-3,180).

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