Indian sugar mills association

Sugar drops despite Pawar`s comments

Date:	06 Mar 2012

Source:	The Business Line

Reporter:	BL Correspondent

News ID:	964

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Mumbai, March 5: Heavy sales in the resale market pulled down sugar prices on the Vashi wholesale spot market by Rs 10 a quintal on Monday. Naka rates improved by Rs 10 as the period for lifting sugar from mills came to an end on Monday. Mill tender rates ruled unchanged. Volume was routine.

Market sources said the Union Agriculture Minister, Mr Sharad Pawar`s statement may improve sentiment at the producing centres but in the physical market, demand remains need-based.

Retail demand is tepid despite the month having just begun, when usually it is high. Stockists are reluctant to increase inventories. Transport charges have increased by Rs 4-5 a bag. Producers, too, are not keen to sell at lower prices due to higher cost of production.

In absence of demand from neighbouring States, local mills in Maharashtra have been forced to depend on local markets. Demand may go up with the onset of summer. Bulk demand from soft-drink sector is expected to rise, too. The Union Government declared lower non-levy free sale quota of 13.5 lakh tonnes for March (14 lakh tonnes for February).

Arrivals in Vashi were about 54-55 truckloads and despatches about 51-52 truckloads. On Saturday, 10-12 mills offered tenders and sold 35,000-40,000 bags at Rs 2,770-2,840 (Rs 2,770-2,850) for S-grade and Rs 2,870-2,940 (Rs 2,880-2,950) for M-grade.

The Bombay Sugar Merchants Association`s spot rates: S-grade Rs 2,900-2,955 (Rs 2,900-2,966) and M-grade Rs 2,982-3,061 (Rs 2,991- 3,061).

Naka delivery rates: S-grade Rs 2,850-2,900 (Rs 2,840-2,880) and M-grade Rs 2,950-3,000 (Rs 2,940-3,000).

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