With monsoon getting delayed in many parts of the country, fears over sugarcane yield next season starting October are mounting.
According to Mr Jagadish Rawa lf B. Bhogilal and Co, a lower yield could affect production. The delay in monsoon has raised doubts if sugar production could be match initial estimates of 260 lakh tonnes.
On Tuesday, S-grade sugar rose Rs 8 a quintal in the spot market, while M-grade was unchanged . Domestic demand was lower due to month-end, said Mr Rawal. At the naka level, S-grade was up Rs 5 while M-grade dropped by Rs 10 a quintal.
Mill tender rates ruled steady as selling by millers, who expect prices to rise from next week, was limited. Prices in other producing centres ruled at a par with those in Maharashtra. Futures were range-bound. Higher production in neighbouring States has kept demand for sugar in the State low, forcing millers here to sell in local markets. This has increased supplies in the State. Mr Rawal said that demand during festivals will be higher in the next two quarters (July-September and October-December). Traders predict that demand will rise in July as Ramzan starts from the month-end. In Vashi, 51-52 truckloads arrived and 45-47 truckloads were despatched locally.
On Monday, fewer mills sold more sugar than on the previous day. Only 10-12 mills offer tenders and sold 58,000-60,000 bags at Rs 2,880-2,930 (Rs 2,880-2,930) for S-grade and Rs 2,960-3,030 (Rs 2,960-3,040) for M-grade.
Bombay Sugar Merchants Association’s spot rates: S-grade Rs 2,980-3,055 (Rs 2,972-3,055) and M-grade Rs 3,052- 3,181 (Rs 3,052-3,181).
Naka delivery rates: S-grade Rs 2,940 -2,970 (Rs 2,935-2,970) and M-grade Rs 3,020-3,100 (Rs 3,030-3,080).