Indian sugar mills association

Sugar may rise on covering buys for March

Date:	29 Feb 2012

Source:	The Business Line

Reporter:	BL Correspondent

News ID:	950

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Mumbai, Feb. 28: Sugar prices ruled steady on Tuesday with minor fluctuations depending on quality of the produce. The volume in the spot market was absent as the market was officially closed on account of the nation-wide bandh. There was no trade at the retail level.

On Monday evening, mills sold sugar to the local traders at the usual price. All are waiting for the announcement of the free sale quota for March. Retail demand is expected to rise soon, said wholesalers.

A Vashi-based trader said that the bandh call on Tuesday resulted in retailers covering their needs a day in advance and, hence, more stocks were dispatched on Monday. The goods dispatched from the mills reached the Vashi market on Tuesday but were not unloaded due to the bandh. There was, therefore, no movement from the market to the retailers.

Tender rates

Mill tender rates are likely to be higher by Rs 5-10 from Wednesday on expectation of higher demand-based coverage for the new month.

Improved retail demand and rising temperature have changed the bearish sentiment.

According to sources, millers appear to have exhausted the maximum quantity and are not under much pressure to sell the current month`s quota. Sugar prices in other producing States are running at a par with Maharashtra, keeping thereby buyers from neighbouring States away from Maharashtra. Hence, in the whole month the producers in the Sate were forced to concentrate on the local market only.

Arrivals in the Vashi market were about 48-50 truckloads but were not unloaded due to the bandh.

On Monday evening, 19-20 mills offered tenders and sold 70,000-75,000 bags of sugar at Rs 2,730-2,800 (Rs 2,730-2800) for S-grade and Rs 2,840-2,880 (Rs 2,840-2,880) for M-grade.

Nominal spot rates were: S-grade Rs 2,870-2,950 (Rs 2,872-2,942) and M-grade Rs 2,980-3,040 (Rs 2,981-3,035).

Naka delivery rates: S-grade Rs 2,815-2,880 (Rs 2,815-2,880) and M-grade, Rs 2,935-3,000 (Rs 2,930-3,000).

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