Spot sugar prices at the Vashi market improved by Rs 10 a quintal on quality on Tuesday. Naka rates fell by Rs 20 a quintal for superior-quality S-grade and increased by Rs 10 a quintal for fair-quality M-grade. Tender rates gained Rs 10-20 a quintal for S-grade while those for M-grade were unchanged, said traders.
An expected delay in crushing as farmers may agitate for a higher sugarcane price and hopes of the Centre allowing more exports kept the market sentiment firm at the mill level, traders said.Mr Jagdish Rawal, a wholesaler said, “At present, the market is passing through a volatile situation as producers are holding the price hoping for some positive news soon. In Maharashtra and Uttar Pradesh, farmers are demanding higher cane price and possible agitation in coming days may affect the production of sugar. Sugar industry is demanding for more exports considering higher production in second consecutive year and the Food Ministry is also supporting that demand. All these factors kept the market sentiment positive.”
According to a report from the National Commodity and Derivatives Exchange, quota of non-levy sugar is higher for the current month at 17.01 lakh tonnes compared with 14 lakh tonnes for November 2010.
On Monday, 15-17 mills offered tenders and sold about 75,000-80,000 bags to local stockists at Rs 2,750-2,800 (Rs 2,730-2,790) for S-grade and Rs 2,840-2,930 (Rs 2,840-2,930) for M-grade. Arrivals in the Vashi market were at 50-52 truckloads of 100 bags each and local dispatches were at 48-50 truckloads. Freight rates were unchanged.
Bombay Sugar Merchants Association's spot rates: S-grade — Rs 2,862-2,932 (Rs 2,851-2,925) and M-grade — Rs 2,956-3,071 (Rs 2,956-3,071).
Naka delivery rates: S-grade — Rs 2,830-2,880 (Rs 2,830-2,900) and M-grade — Rs 2,930-3,030 (Rs 2,920-3,030).