The Hindu Business Line : Fresh, upcountry offtake perks up sugar

Spot prices shot up by Rs 10-15 in S-grade and Rs 15-20 in M-grade on the Vashi wholesale market. With an increased buying from neighbouring States, mills have stopped selling at lower price. The Naka delivery rates went up Rs 40-50 a quintal.

Traders said that the Government had extended the July free sale sugar quota till the month-end. They believe the August sale quota could also be extended. There is a talk of 15-20-day extension for August quota. In the last two working days, around 6.50-7 lakh bags (each 100 kg) were sold by Maharashtra mills.

There is good demand from Delhi, Kolkata, Assam and Bihar on a rake delivery basis and from Gujarat, Madhya Pradesh and Rajasthan on truck delivery basis.

Mr Tokershi Dedhia, a wholesaler, said mills got the expected relief from extension for the July quota, arresting the declining trend. Last week, sugar prices dropped Rs 70-75 a quintal.

Around 2.50-3 lakh bags sugar were purchased by local traders and around 8-9 rakes were sold by mills to Delhi, Assam, Bihar, Kolkata traders last week end.

Most of the sugar sold was of S-grade in the price range of Rs 2,340-2,380 (including excise). Mills were offering tenders at the rate of Rs 2,400-2,425 for S-grade and Rs 2,450-2,450 (including excise). Total arrival at Vashi was 38-40 truckload (10 tonnes each) and lifting was 48-50 truckloads.

According to the Sugar Merchants Association, spot market rate was for S-grade Rs 2,500-2,570, (Rs 2,490/Rs 2,550), M-grade was Rs 2,520/Rs 2,620 (Rs 2,505-2,605). Naka delivery rate: S-grade Rs 2,490-2,500 (Rs 2,440/Rs 2,460); M-grade Rs 2,530-2,560 (Rs 2,470/Rs 2,540).