Indian sugar mills association

Sugar turns bitter on heavy resale pressure

Date:	17 Dec 2011

Source:	The Business Line

Reporter:	BL Correspondent

News ID:	772

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Mumbai, Dec. 16: Sugar markets in the country are currently passing through a bearish phase on lack of demand and ample supply.

Sugar price on the Vashi spot market further declined by Rs 30-40 for S-grade and Rs 40-50 for M-grade on Friday, taking the total decline this month to Rs 225-250. In the absence of demand, market sentiment remained weak. Further decline cannot be ignored, said a wholesaler.

Sources said that under heavy resale pressure, naka rates dropped by Rs 40-50 a quintal as purchasers had to fulfil time-bound old purchases. In the absence of demand, sellers had to offload in the local market. On the other side, decline in mill tender rates were limited to Rs 20-25 as producers hesitate to sell at lower rates. So far this week, sugar price has come down by Rs 80-100.

As of now, the Vashi market is carrying daily inventory stock of nearly 80-100 truckloads (each 100 bags of a quintal). Hence, the stockists are not willing to add more considering weak demand.

At the Vashi market on Thursday, 17-18 mills have offered tenders and sold 35,000- 40,000 bags in the range of Rs 2,800-2,870 (Rs 2,820-2900) for S-grade and Rs 2,900-2,970 (Rs 2,920-3,010) for M-grade. Arrivals in Vashi market were lower at 46-48 truckloads and local dispatches were around 40-42 truckloads.

Bombay Sugar Merchants Association`s spot rates: S-grade Rs 2,961-3,011 (Rs 2,991-3,045) and M-grade Rs 3,031- 3,156 (Rs 3,076-3,182).

Naka delivery rates: S-grade Rs 2,900-2,940 (Rs 2,940 - 2,980) and M-grade Rs 3,000-3,050 (Rs 3,040-3,140).

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