Indian sugar mills association

Sugar rules flat on lukewarm demand

Date:	21 Dec 2011

Source:	The Business Line

Reporter:	BL Correspondent

News ID:	784

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Mumbai, Dec. 20: Sugar prices remained flat in Uttar Pradesh on lukewarm demand but saw a slight improvement in Maharashtra on Tuesday following increased demand from stockists at lower levels.

Maharashtra`s mills sold over one lakh bags at ruling price to local traders on Monday evening. In Uttar Pradesh, sugar produced last season that ended in September was quoted at Rs 2,800 a quintal, while the one produced this season ruled at Rs 2,900.

In physical market, prices rose by Rs 10 a quintal while naka delivery prices showed mixed trend with Rs 20 plus or minus based on quality and need.

A wholesaler said that higher production parity is keeping millers to hold price. Buying by neighbouring States is also expected to improve along with local demand for coming Christmas festival. Once the upcountry buying improves prices are expected to rise sharply.

Sugar price in other producing centres and in futures were showing slight improvement. As of now, Vashi market is carrying an inventory of nearly 90 – 100 truckloads (of 100 bags each).

On Vashi market about 24-25 mills offered tender and sold 1-1.25 lakh bags in the range of Rs 2,800-2,850 (Rs 2,800-2850) for S-grade and Rs 2,880-2,970 (Rs 2,880-2,970) for M-grade.

Arrivals were at 50-52 truckloads and local dispatches were around 48-50 truckloads. Bombay Sugar Merchants Association`s spot rates: S-grade – Rs 2,941-3,001 (Rs 2,931-3,000) and M-grade – Rs 3,000- 3,122 (Rs 3,000-3,112).

Naka delivery rates: S-grade – Rs 2,900-2,920 (Rs 2,900-2,940) and M-grade – Rs 3,000-3,050 (Rs 2,980-3,060).

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