Indian sugar mills association

Maharashtra sugar up on demand

Date:	30 Nov 2011

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News ID:	737

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Mumbai, Nov. 29: The sugar market was quiet in Uttar Pradesh with traders awaiting the Centre`s monthly release quota for the open market on Tuesday. However, prices at the Vashi wholesale market, increased by Rs 10-15 a quintal in spot, tracking a firm trend upper level.

Mill tender rates in Maharashtra witnessed a jump of Rs 25-30 on strong expectation of lower free sale quota for December, compared with November and on fresh local demand and from neighbouring States. Naka rates improved by Rs 25-40 on eased selling pressure of monthly quota`s due date which ends on Wednesday.

A trading source in Uttar Pradesh said the free sale quota was expected to be between 15.5 lakh tonnes (lt) and 16.5 lt. “Physical trading was quiet in anticipation of the monthly quota. If the quota is 16.5 lt, then prices will drop. If it is on the lower side, rates will increase,” the source said.

Prices for sugar produced last season that ended in September were Rs 3,050 a quintal, while sugar produced in the new season ruled at Rs 3,150. “Both rates were unchanged since sellers and buyers were chary of taking positions,” the source said. Eastern side buyers again started covering sugar from Maharashtra and this supported the overall sentiment . The volume was higher as the market was closed for half day the previous day with higher arrivals and local dispatches. The recent announcement of exports of 10 lakh tonnes sugar and expectation of more relaxation in the coming days kept sentiment firm at the higher level. The removal of stock limits also encouraged stockists to bet for more storage for the upcoming marriage season.

. On Monday late evening, about 17-18 mills offered tenders and sold about 65,000-70,000 bags to local and up country buyers which include one rake (about 27,000 bags) bought by eastern traders. Mills sold sugar in the range of Rs 2,975-3,050 (Rs 2,970-3,030) for S-grade and Rs 3,110-3,140 (Rs 3,070-3,120) for M-grade. Arrivals in Vashi market were at 56-58 truckloads and local dispatches at 54-55 truckloads.

Bombay Sugar Merchants Association`s spot rates: S-grade Rs 3,146-3,236 (Rs 3,136-3,221) and M-grade Rs 3,242- 3,392 (Rs 3,232-3,392).

Naka delivery rates: S-grade Rs 3,100-3,160 (Rs 3,075-3,120) and M grade Rs 3,200-3,280 (Rs 3,160-3,250).

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