Indian sugar mills association

Purchases by Eastern States sw

Date:	04 Nov 2011

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News ID:	647

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Mumbai, Nov. 3: Sugar prices increased sharply on new buying from local and neighbouring States on Thursday.

In the Vashi market, spot rates increased by Rs 20-25 a quintal for fair quality, while fine quality remained unchanged. Naka rates improved by Rs 20 for S-grade and by Rs 50 for M-grade. About two to three rail rakes of 27,000 bags each were bought by buyers from eastern States on Wednesday evening.

An analyst said the demand to allow exports of 10 lakh tonnes immediately by the National Federation of Cooperative Sugar Factories Ltd has supported the market sentiment as production is expected to be higher than local demand for the second consecutive year. The Government is also very keen to allow sugar exports but is hesitating to take the decision considering high food inflation.

Sugar millers have been demanding for more sugar exports without delay for long now. On talks of possible increase in sugar exports from the country, local sugar futures market also gained sharply.

Market sources said in the Vashi physical market, new local demand, demand from mills of neighbouring States and firm futures market have improve the sentiment. Demand at the beginning of the month keeps the morale positive. Local stockists have also started new covering. Local traders have bought about 65,000–70,000 bags through mills` tenders offer. On Wednesday, 14–15 mills sold 1–1.25 lakh bags at Rs 2,700-2,760 (Rs 2,680-2,760) for S-grade and at Rs 2,820-2,900 (Rs 2,800-2,900) for M-grade. With increase in local demand, Vashi market got 53-54 truckloads of arrivals, while local despatches were at 51-52 truckloads. Freight rates were steady.

Bombay Sugar Merchants Association`s spot rates (Rs/quintal) : S-grade — Rs 2,846-2,900 (Rs 2,821-2,900) and M-grade — Rs 2,941-3,061 (Rs 2,921-3,061).

Naka delivery rates : S-grade — Rs 2,780-2,850 (Rs 2,760-2,830) and M-grade — Rs 2,920-3,020 (Rs 2,870-3,010).

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