Indian sugar mills association

Lower open sale quota boosts sugar

Date:	01 Mar 2012

Source:	The Business Line

Reporter:	BL Correspondent

News ID:	954

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Mumbai, Feb. 29: Sugar prices firmed up on Wednesday after the Centre announced a lower open sale quota for March.

Prices strengthened by Rs 15–25 a quintal tracking improvement of Rs 10-20 in naka rates due to lower selling by mills.

Mill tender rates were up Rs 10-20 as selling pressure eased. The volume was routine but the sentiment was positive as traders expect buying support from retailers in the next few days.

Mr Jagdish Rawal, a wholesaler, said that the sentiment improved on expectation of higher demand due to rising temperatures across the country. A broker said fewer mills came forward with tender offer, indicating that producers were not under pressure to sell allotted free sale quota of February. Local retail demand is expected to rise in the first fortnight. Stockists have slowly started covering inventory to fill the retail demand.

Arrivals in Vashi market were higher at 55-56 truckloads and local despatches were about 56-57 loads. On Tuesday, only 10-12 mills offer tenders and sold 80,000-90,000 bags in the range of Rs 2,745-2,810 (Rs 2,730-2800) for S-grade and Rs 2,860-2,900 (Rs 2,840-2,880) for M-grade.

The Bombay Sugar Merchants Association`s spot rates:S-grade Rs 2,900-2,952 (Rs 2,872-2,942) and M-grade Rs 2,996-3,052 (Rs 2,986-3,036).

Nakadelivery rates:S-grade Rs 2,840-2,890 (Rs 2,815-2,880) and M-grade Rs 2,940-3,000 (Rs 2,930-3,000).

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