Indian sugar mills association

Sugar turns bitter on higher open sale quota

Date:	02 Dec 2011

Source:	The Business Line

Reporter:	BL Correspondent

News ID:	746

Pdf:
Nlink:

MUMBAI, DEC. 1 : Sugar prices dropped across the country by Rs 25 a quintal on Thursday after the Centre announced a higher open market sale quota of 17 lakh tonnes for this month.

In Uttar Pradesh, sugar produced last season that ended in September was quoted at Rs 3,025 a quintal, while sugar produced this season was Rs 3,125.

“There were no buyers because people are still scared to trade fearing further fall,” said a trading source in Uttar Pradesh.

The sentiment in the Vashi wholesale sugar market was weak after the announcement of the free-sale quota. Traders expect the market to open weak on Friday, but the trend will depend on how millers sell their stocks.

Traders think the quota for December looks sufficient to meet the local demand. Traders on Wednesday evening said there were no tenders from the millers on expectation of the official announcement of quota. In view of traders bandh on Thursday, there was no buying-selling interest. Rates for sugar at the mill level were reported to be at Rs 2,940-3,030 for S-grade and at Rs 3,050-3,100 for M-grade.

Mumbai spot rates: S-grade - Rs 3,100-3,230, and M-grade - Rs 3,220- 3,375. Naka delivery rates: S-grade - Rs 3,050-3,120, and M-grade - Rs 3,150-3,230.

News

Navigation