Indian sugar mills association

Limited demand keeps sugar on leash

Date:	19 Jan 2012

Source:	The Business Line

Reporter:	BL Correspondent

News ID:	867

Pdf:
Nlink:

Mumbai, Jan. 18: Sugar prices on the Vashi market witnessed a steady trend on routine middle month demand on Wednesday. Weak sentiment arrested firm futures market. Sugar futures were up by Rs 25-30 a quintal till noon on talk of possible decontrol of sector. In the physical market, prices dropped by Rs 10-15 a quintal based on quality while naka rates witnessed mixed trend with S-grade up Rs 10 and M-grade down Rs 10. Mill tender rates for M-grade dropped by Rs 10-20 a quintal as few mills sold sugar at lower rates. Tender rates for S-grade ruled steady. Volume was lower than on Tuesday day on limited demand. A wholesaler said local demand is limited as is the trend in the middle of the month. Millers continued selling in local market in absence of demand from neighbouring States. Crushing season is at its peak now and producers are willing to avoid big inventories. Despite lower free sale quota for the current month prices are under pressure. Retail demand is expected to improve in the last week of the month.

Sugar industry is waiting for the Centre`s move towards decontrolling of the sector. Meanwhile, arrivals at Vashi market was 48-50 truckloads and local dispatches were around 46-47 truckloads. On Tuesday 12-13 mills offered tenders and sold about 50,000-55,000 bags at Rs 2,760-2,840 (Rs 2,760-2840) for S-grade and Rs 2,830-2,930 (Rs 2,860-2,940) for M-grade. Bombay Sugar Merchants Association`s spot rates: S-grade — Rs 2,892-2,972 (Rs 2,892-3,001) and M-grade — Rs 2,961-3,092 (Rs 2,976-3,092).

Naka delivery rates: S-grade — Rs 2,850-2,900 (Rs 2,840-2,890) and M-grade — Rs 2,930-3,030 (Rs 2,940-3,050).

News

Navigation