Sugar market turns bullish on lower sale quota

Sentiments in the sugar market improved on Friday after the Government announced 45 lakh tonnes non-levy free sale sugar quota for the April-June quarter. The quota is lower by 5.86 lakh tonnes compared with the same period a year ago.

Some traders are optimistic about firm trend due to summer days while others believe that the market trend will depend on demand and selling methods adopted by mills.

The Government said of the 45 lakh tonnes quarterly quota, producers–mills are bound to sell a minimum 25 per cent of the quota every month. At present, the market has considered 45 lakh tonnes normal free sale quota (average 15 lakh tonnes a month) sufficient to meet the domestic demand.

Sugar price on the Vashi spot market declined by Rs 10 for S-grade and increased by Rs 10 for M-grade. Naka and mill tender rates rule steady on Friday. Retail demand improved ahead of

Ram Navami on Sunday. Arrivals and dispatches were higher compared with the last couple of days. In the physical market, month-end activities remained at routine levels. But fresh demand buying will emerge with the start of the new month, traders said.

Arrivals at the Vashi market were 54-55 truckloads and dispatches were 50-52 loads. On Thursday, only 7-8 mills offered tenders and sold about 18,000-20,000 bags in the range of Rs 2,710-2,770 (Rs 2,710-2,770) for S-grade and Rs 2,800-2,890 (Rs 2,800-2,890) for M-grade.

The Bombay Sugar Merchants Association's spot rates rates : S-grade Rs 2,860-2,911 (Rs 2,860-2,925) and M-grade Rs 2,970-3,041 (Rs 2,960-3,046). Nakadelivery rates : S-grade Rs 2,820 -2,870 (Rs 2,820-2,870) and M-grade Rs 2,920-3,000 (Rs 2,920-3,000).