Indian sugar mills association

Sugar stockists avoid building inventories

Date:	21 Jan 2012

Source:	The Business Line

Reporter:	BL Correspondent

News ID:	875

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Mumbai, Jan. 20: Highernakasales pulled down sugar by Rs 10 a quintal on the wholesale spot market in Vashi on Friday, whilenakarates themselves fell by Rs 10 a quintal on lack of demand.

Traders expect demand to improve next week. Sugar prices, down Rs 250-300 a quintal in the last six to seven weeks, are now below the cost of production.

Mills were reluctant to sell at lower prices. Stockists avoided building inventories and bought more fine quality sugar as its prices have fallen. Local demand remained need-based. Supplies were as usual. Higher production this year and lack of demand from neighbouring States put more pressure on producers. While 50-52 truckloads arrived in Vashi, local despatches were around 50-52 truckloads. On Thursday evening, only about 11-12 mills offered tenders and sold about 35,000-37,000 bags at Rs 2,755-2,850 (Rs 2,755-2850) for S-grade and at Rs 2,840-2,930 (Rs 2,840-2,930) for M-grade.

The Bombay Sugar Merchants Association`s spot rates:S-grade — Rs 2,882-2,956 (Rs 2,892-2,966) and M-grade — Rs 2,958- 3,082 (Rs 2,951-3,092).

Nakadelivery rates:S-grade — Rs 2,840-2,880 (Rs 2,850-2,900) and M-grade — Rs 2,920-3,000 (Rs 2,920-3,000).

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