Sugar prices on the Vashi wholesale market ruled steady for the third consecutive day with minor changes on Friday.
In the spot, prices declined by Rs 3 for S-grade on the higher side while it increased by Rs 9 for M-grade on the lower side. Naka and mill tender rates were unchanged on routine activities. Demand for the fine variety continued to be higher ahead of Diwali .
Meanwhile, traders have struck export deals for about 1.75 lakh tonnes of raw sugar for December-January delivery, but exports are unlikely to pick up if mills are forced to buy cane from farmers at higher price. An observer said that a dispute over sugarcane prices between farmers and mills may curb sugar exports, delay crushing in the new season and even trigger bankruptcies. Farmers in the top sugar producing States of Maharashtra, Uttar Pradesh and Karnataka are demanding higher payment for their cane while millers, already cash-strapped, want to rationalise prices in line with prices.
Sources said that sugar market is passing through limited activities despite higher demand for festival this month because the new crushing season has begun and the carryover stocks are high. are This is keeping prices under check. Arrivals in Vashi market were 62-63 truckloads (100 bags each) while local dispatches were also 61-62 loads. On Thursday, 14 -15 mills came forward with tenders and sold about 38,000- 40,000 bags at Rs 2,700-2,840 (Rs 2,700-2,840) for S-grade and Rs 2,880-3,000 (Rs 2,880-3,000) for M-grade.
The Bombay Sugar Merchants Association's spot rates were: S-grade Rs 2,892-3,032 (Rs 2,892-3,035) and M-grade Rs 3,011-3,251 (Rs 3,002-3,251). Nakadelivery rates were: S-grade Rs 2,830-2,920 (Rs 2,830-2,920) and M-grade Rs 2,950-3,120 (Rs 2,950-3,120). Uttar Pradesh rates were: Lakhimpur Rs 3,320 and Muzzafarnagar Rs 3,230.