Sugar mills meet to set course for prices

Date 22-Jul-2010        Source THE HINDU. BUSINESS LINE        Reporter Our Correspondent        News Id 232

Sugar prices are likely to get direction from the outcome of a mills’ meeting scheduled to held in Mumbai on Thursday, trade sources said. The wholesale Vashi sugar market was officially closed on Wednesday on account of ‘Ashadi Ekadashi’. But late on Tuesday evening, the naka delivery trade witnessed a good volume, specially in the M-grade, and the price firmed up by Rs 10 a quintal. Mr Hirenbhai of Surya traders said that mills could take a firm decision on the base price at which they will offer sugar. Some traders said mills may raise their base price in Thursday’s meeting.Panic Sales However, a section is of the view that mills may resort to panic sales as inventory was building up and to complete the monthly sale quota. This month mills have been able to offload only about 60 per cent of their July sale quota. On the spot, S-grade was quoted at Rs 2,685-2,720 a quintal and M-grade at Rs 2,705-2,78. Naka delivery rate for S-grade was Rs 2,650-2,680 and for M-grade Rs 2,690-2,730. The mill delivery Tender (including excise) was quoted at Rs 2,585-2,600 (S-grade) and Rs 2,610-2,650 (M-grade). Maharashtra ex-mill prices were Rs 2,500-2,525 (S-grade) and Rs 2,530-2570 (M-grade).