Sugar hits the bottom

After witnessing a continuous decline for over eight weeks, sugar prices at the Vashi wholesale market ruled steady as there is no room for further drop. Producers’ parity is around ₹3,400 per quintal and they are currently selling at ₹2,550-2,700 resulting in huge loss. Higher production, surplus stock, bleak chances of exports are the main factors for the bearish trend, said an analyst.

Naka and mill tender rates were unchanged with routine volume at mill level. Arrivals were at 57-58 truck loads and local dispatches were at 55-56 loads. Freight rates were steady. On Monday, Maharashtra’s 17-18 mills sold about 40,000-42,000 bags at ₹2,540-2,640 for S-grade and ₹2,640-2,770 for M-grade.

The Bombay Sugar Merchants Association’s spot rates: S-grade ₹2,690-2,825 and M-grade ₹2,772-3,032. Naka delivery rates: S-grade ₹2,600-2,700 and M-grade ₹2,700-2,900.