Indian sugar mills association

Weak bulk demand crushes sugar

Date:	14 Dec 2011

Source:	The Business Line

Reporter:	BL Correspondent

News ID:	764

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Mumbai, Dec. 13: Sugar prices continued to decline across the country because of slack buying by bulk consumers due to onset of winter.

On the Vashi spot wholesale market in Maharashtra, prices declined by Rs 10-20 for S-grade, while M-grade held steady due to need-based mid-month demand. Naka rates dropped by Rs 15-20 following a decline in mill tender rates by Rs 10-15.

Maharashtra mills maintained the price for fine variety M-grade, while sold fair quality S-grade at reduced rates. Volumes declined with eased demand. The sentiment was cautious and the market may witness range-bound movement with marginal decline till next week, traders in Vashi said.

Mr Jagdish Rawal, a wholesaler, said that as expected mid-month demand eased sharply in Maharashtra. With winter setting in, the demand is expected to reduce further. Buying by neighbouring States has been lacking since the start of the month, forcing the mills in Maharashtra to concentrate on selling locally.

At Vashi market on Monday, 16-18 mills offered tenders and sold 35,000- 40,000 bags at Rs 2,880-2,950 (Rs 2,900-2970) for S-grade and Rs 2,985-3,060 (Rs 2,990-3,070) for M-grade.

Arrivals at the Vashi market were 44-45 truckloads and local dispatches were around 40-42 truckloads. Domestic freight rates were unchanged.

Bombay Sugar Merchants Association`s spot rates : S-grade, Rs 3,021-3,111 (Rs 3,041-3,115); and M-grade, Rs 3,131- 3,252 (Rs 3,131-3,252).

Naka delivery rates were: S-grade, Rs 2,960-3,030 (Rs 2,980 - 3,020); and M-grade, Rs 3,070-3,150 (Rs 3,080-3,170).

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