Sugar prices rose a tad at the mill level in Maharashtra on higher demand from stockists, while they were unchanged on the spot market on Thursday. Retailers placed new orders at lower prices on the Vashi wholesale market to build up stocks. Mill tender rates improve by Rs 10-15 a quintal for fine quality. Naka rates were unchanged.
Since last month, demand from neighbouring States has been dull. Traders hope that will improve in the second fortnight.
Rising world sugar prices may help exports, Mr Jagdish Rawal, a wholesaler trader. Local futures markets improved by Rs 10-15 till the noon.Market analysts said prices will increase as the Centre has announced a lower free-sale quota of 15 lakh tonnes for January (17 lakh tonnes for December). Sugar industry players think that present ex-mill prices are below the cost of production.
While 51-52 truckloads arrived at the Vashi market, local dispatches were around 49-50 truckloads. On Wednesday, 20-22 mills offered tenders and sold about 1.6-1.75 lakh bags at Rs 2,740-2,820 (Rs 2,720-2820) for S-grade and Rs 2,820-2,930 (Rs 2,820-2,920) for M-grade. Bombay Sugar Merchants Association's spot rates: S-grade — Rs 2,876-2,995 (Rs 2,876-2,996); M-grade — Rs 2,961-3,092 (Rs 2,960-3,092).
Nakadelivery rates: S-grade — Rs 2,840-2,900 (Rs 2,840-2,900); M-grade — Rs 2,910-3,050 (Rs 2,910-3,050).