Sentiment in the sugar market ruled steady on Friday on routine demand and supply. Spot prices improved by Rs 4 a quintal for S-grade and declined Rs 8 for M-grade.
Naka rates rose by Rs 20 for both varieties due to higher parity. Mill tender rates were unchanged as demand did not improve as expected. Arrivals, dispatches and new activities were at routine level, said a wholesaler.
Sources at the Vashi market said stockists, with routine demand, supply and sufficient inventory stocks in hand, kept away from bulk buying.
Supply from mills is also ample. Despite an increase in temperature, retailer buying is need-based as it is vacation time at colleges and school terms have just started. There is sufficient – about 75-80 truckloads (Each of 100 bags of 100 kg each) inventory in the market, keeping stockists away from fresh bet.
Absence of demand from neighbouring States in Maharashtra is forcing mills to concentrate on local markets, thereby augmenting supply.
Mills are reluctant to sell at lower rates, expecting improvement in demand and higher prices. Market is currently passing through a dull period with little volatility. Volumes have become need-based, he said.
Demand from Gujarat, Rajasthan and Madhya Pradesh are isolated. Rail rake volume with eastern buyers is lacking.
At the Vashi market, arrivals was about 50- 52 truckloads and local dispatches were less at about 48-50 truckloads. On Thursday evening, merely 12-14 mills offered tenders and sold 56,000-58,000 bags in steady range of Rs 2,760-2,830 (Rs 2,760-2,830) for S-grade and Rs 2,870-2,940 (Rs 2,870-2,940) for M-grade.
Bombay Sugar Merchants Association's spot rates: S-grade Rs 2,886-2,952 (Rs 2,882-2,951), and M-grade Rs 2,986-3,121 (Rs 2,992-3,131). Naka delivery rates: S-grade Rs 2,850 -2,900 (Rs 2,830-2,880) and M-grade Rs 2,950-3,050 (Rs 2,930-3,040).