Sugar drops as mills blink on base price

Date 29-Jul-2010        Source THE HINDU.BUSINESS TIME        Reporter Our Correspondent        News Id 245

Sugar prices dropped sharply on Wednesday as mills started to sell below the base price of Rs 2,700 a quintal fixed last Thursday. Parity between resale delivery and direct purchase from mill, the trading volume was low. On Wednesday the spot price dropped Rs 30 a quintal for S-grade and Rs 75-80 for M- grade. Mr Tokershi Dedhia of Surya traders said that spot markets’ lukewarm response led to similar decline in naka and tender delivery rates on the Vashi wholesale market. From Tuesday evening, mills have started offering at reduced price (almost Rs 125 to Rs 150 below their base price). On Wednesday, mills offered S-grade at Rs 2,650. On Wednesday, Vashi market witnessed arrivals at 23-55 truckloads (10 tonnes each) and lifting was 45-47 truckloads. All market players are waiting for the August free sale announcement, said Mr Hiren Dedhia. According to the Sugar merchants Association on Monday, the spot market rate for S-grade was Rs 2,760 -2,790 a quintal. M-grade was at Rs 2,780-2,880.