Mills’ selling weighs down sugar

Date 15-Jul-2010        Source tHE HINDU.BUSINESS LINE        Reporter Our Correspondent        News Id 227

Sugar price witnessed a mixed trend on Thursday on the wholesale Vashi market. Continued selling pressure from mills and stockists weighed on the sentiment and kept retailers away from purchasing. Spot price dropped Rs 10 in both S- and M-grade. In Naka delivery trade, good demand from upcountry buyers kept the market active. M-grade sugar from Kolhapur has been in the limelight in the last two days. Mr Tokershibhai of Surya Traders said heavy buying by upcountry traders from Gujarat, Rajasthan, and Madhya Pradesh lent support to market sentiment. In the last two days, mills from Kolhapur and Karad have approximately sold 300 truckloads (10 tonnes each) at above price level. Mills in other areas were not willing to sell at lower price.Other traders said that there is disparity between market rate and purchasing cost from mills. Spot market rate was Rs 20-25 lower forcing stockists to clear their old stocks. Low inventory Market inventory is declining. Sugar lifting from market was higher than arrivals. The total arrivals in the Vashi market was 23 – 25 truck loads (each of 10 tonnes) on Thursday, whereas lifting was at 35-40 truck loads. According to the Bombay Sugar Merchants Association, spot rate was Rs 2,680-2,710 a quintal for S-grade and Rs 2,710- 2,790 for M-grade. Naka delivery rate was Rs 2,660-2,670 (S-grade) and Rs 2,700-2,730 (M-grade). The mill delivery tender (including excise) was quoted at Rs 2,580-2,600 (S-grade) and Rs 2,620-2,650 (M-grade). Maharashtra Ex mill prices were quoted at Rs 2,500-2,520 (S-grade) and Rs 2,530-2,575 (M-grade).