Gur futures take a knock

Gur prices have declined by nearly 5 per cent in the futures market over the last four weeks owing to bulk carryover stocks of the 2005-06 season (October-September).

The futures prices of gur for October and November delivery on National Commodity & Derivatives Exchange (NCDEX) fell from Rs 603 and Rs 518, respectively, on September 7 to Rs 575 and Rs 506, respectively. The spot price on Multi Commodity Exchange slipped to Rs 522 from Rs 541 during the same period.

In Muzzafarnagar, the largest gur mandi in Asia, the price around this time last year was in the range of Rs 650-680 a 40-kg bag. However, this year, the price has come down to Rs 470-500 level.

The carryover stock of gur in the mandi, this year, is much higher at 5.4 lakh bags (of 40 kg each) against 1.8 lakh bags during the same period last year.

"Gur traders are in a panic. The new arrivals have started making their way in while we still have large stocks of the previous season. As the new gur has started coming in, there is a likelihood that the previous stocks will not be in demand," said Arun Khandelwal, president, Muzaffarnagar Federation of Gur Traders.

"Though the new gur is priced at about Rs 30 a bag higher than the old, retailers prefer the new gur as it is fresh and compact," another trader added.

Usually, gur prices vary directly with sugar prices. However, over the last four weeks, while the futures prices of sugar have gone up by about 2 per cent, gur prices have gone down.

Sugar futures for October delivery on NCDEX surged to Rs 1,838 a quintal from Rs 1,797 on September 7.