Indian sugar mills association

Sugar slides on weak consumpti

Date:	29 Nov 2011

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News ID:	735

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Mumbai, Nov. 28: Sugar prices at the Vashi wholesale market were down by Rs 10–12 a quintal on Monday on weak demand.

The market is keenly waiting for the announcement of the new month`s free-sale quota as mills have exhausted most of the current month`s quota. Agricultural produce market committees in Vashi closed after 2 p.m. as traders and mathadi kamgars participated in a rally against foreign direct investment in retail sector.

Traders are expecting 16.5–17 lakh tonnes of free-sale quota for next month. In December 2010, the quota was at 17.08 lakh tonnes, consisting 15 lakh tonnes free sale and 2.08 lakh tonnes levy. This year, considering higher production and stocks, the government may declare slightly higher quota.

In October (a festival month), free-sale quota was 17 lakh tonnes and sugar prices couldn`t cross Rs 3,000. While for November, the free-sale quota was at the same level and demand also eased but prices went up to Rs 3,400 for a quintal, said a wholesaler.

On Saturday, mills kept away from offering tenders for M-grade sugar.

Few mills have sold small quantities as mills were not interested to sell at a lower price. On Saturday, about 10-12 mills offered tenders and sold about 28,000-30,000 bags of S-grade sugar to local traders at Rs 2,970-3,030 (Rs 2,980-3,050).

Tender rates for M grade were at Rs 3,050-3,120 (Rs 3,070-3,180).

Arrivals in the Vashi market were at 48-50 truckloads while local dispatches were at 25-30 truck loads as the market closed after 2 p.m.

Bombay Sugar Merchants Association`s spot rates: S-grade — Rs 3,136-3,221 (Rs 3,131-3,235); and M-grade — Rs 3,232- 3,392 (Rs 3,242-3,392).

Naka delivery rates: S-grade — Rs 3,075-3,120 (Rs 3,080-3,150); and M-grade — Rs 3,160-3,250 (Rs 3,170-3,280).

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