Sugar under higher open sale quota shadow

Our Correspondent Updated - October 05, 2012 at 09:21 PM.

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Sugar prices on the Vashi wholesale spot market extended loss further by Rs 10-20 a quintal on Friday on continuous supply from mills and eased demand.

Naka rates dropped by Rs 30 for S-grade and Rs 10 for M-grade on increased resale selling pressure.

Mill tender rates declined by Rs 10-20 a quintal.

Buying by the eastern States continued for third consecutive day. Arrivals in Vashi were higher than demand.

A Vashi-based trader said that despite higher local demand and continuous buying by the East, prices are under pressure on expectation that higher free sale quota will curb any jump.

Maharashtra’s mills sold about one lakh bags sugar including one rail rake (about 27,000 bags) of S-grade at Rs 3,385 to eastern side buyers.

In Vashi market, arrivals were about 67-68 truckloads (each of 100 bags of quintal each) and local dispatches were about 64-65 loads.

On Thursday evening, about 18-20 mills offered tenders and sold 65,000-70,000 bags (each of 100 kg) to the local traders and one rail rake (about 27,000 bags) to Eastern buyers.

They sold S-grade at Rs 3,380-3,440 (Rs 3,405-3,450) and M-grade at Rs 3,480-3,540 (Rs 3,480-3,550).

The Bombay Sugar Merchants Association's spot rates: S-grade Rs 3,532 – Rs 3,622 (Rs 3,542 – Rs 3,621) and M-grade Rs 3,622- 3,711 (Rs 3,632- 3,731).

Nakadelivery rates: S-grade Rs 3,460 -3,510 (Rs 3,510 -3,540) and M-grade Rs 3,540-3,640 (Rs 3,550-3,640).

Published on October 5, 2012 15:51