Indian sugar mills association

Sugar extends losing streak

Date:	15 Nov 2011

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News ID:	684

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Mumbai, Nov. 14: Sugar prices at Vashi market extended their losing streak further on Monday by Rs 20 a quintal for fine quality even as fair quality sugar rates remained unchanged. Naka rates declined sharply by Rs 10 for S-grade and Rs 30 – Rs 50 for M-grade on lack of demand and increased selling by mills. Mill tender rates were expected lower by Rs 15 – Rs 20 despite producers not willing to sell at lower rates, tracking higher prices in northern markets.

A wholesaler at the Vashi market said: “The commodity prices rose by a total of Rs 170 – Rs 175 while Mill tender rates shot up by Rs 175 – Rs 200 till last Friday this month on expectation of sharp hike in cane price by the Government in line with (cane prices in) Uttar Pradesh, but the Maharashtra Government has fixed the cane price in the range of Rs 180 – Rs 205 a quintal, which was a less than expected rise. Mills are calculating higher costs of production as farmers are demanding much higher rates”.

After the State Government`s decision on Saturday, sugar prices were down sharply by Rs 50 a quintal on producers` selling pressure. As there is no fresh active demand from local and upcountry buyers, the bearish trend continued on Monday, he said. The weak sentiment may extend further. Mills are hoping for fresh export permission soon, and have held prices, but buying support is poor, he said. In Maharashtra, mills continued to hold the price and rates here were roughly Rs 200 lower than in northern states. On Saturday, only 4–5 Mills offered tenders and sold about only 3,000 to 4,000 bags of sugar, in the range of Rs 2790 – Rs 2960 (Rs 2820 – 2880) for S-grade and Rs 2900 – Rs 3010 (Rs 2925 – Rs 3030) for M-grade.

Arrivals at the Vashi market were at routine levels. Market witnessed arrivals of about 50-52 truckloads and local dispatches were nearly 48–50 truck loads. In the international market, sugar futures prices declined by $22.70 to $652.10 ($674.80) for December-11 while March-12 futures were down by $16.40 to $639.60 ($656.00) on Friday.

Bombay Sugar Merchants Association sugar rates:

Spot rates: S-grade Rs 2931- Rs 3001 (Rs 2921 – Rs 3021) and M-grade Rs 2991- Rs 3132 (Rs 2991- Rs 3152).

Naka delivery rates: S-grade Rs 2900- Rs 2950 (Rs 2910 –Rs 2960) and M grade was Rs 2970- Rs 3050 (Rs 3000 – Rs 3100).

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