Sugar prices slip by Rs 5

If govt releases quota as expected, prices may drop by Rs 30-40/ quintal

Following a rise of Rs 20 last week, sugar prices slumped by Rs 5 a quintal today, thus witnessing a steady trend before the New Year.

Mill delivery S30 grade sugar is currently quoting in the range of Rs 1,725-1,740 a quintal, lower than that of naka delivery at Rs 1,780-1,795 a quintal. Similarly, mill delivery M30 too is quoted lower at Rs 1,775-1,805 a quintal than that of naka delivery in the range of Rs 1,835-1,855 a quintal.

"The government may announce quarterly quota any time now. Traders expect a quota of 11 lakh tonne, 11 lakh tonne and 13 lakh tonne of sugar for January, February and March respectively. If the expected quota is released, sugar prices may drop down by Rs 30-40 a quintal)," said Rajendra Shah of Hitendra Kumar Tokashi & Co. But, as proposed, if India exports 8 lakh tonne sugar to Pakistan, prices may see a gain of up to Rs 200, Shah added.

"Pakistan had proposed to import sugar from India last year, but exports could not take off on political grounds. This year too, whether Pakistan is going to import sugar from India or not is a key factor, and prices in the domestic market would depend on when the exports deal is signed," said a trader.

At Vashi, small grade sugar was quoting in the Rs 1,805-1,845 a quintal range, while medium grade was selling at Rs 1,850-Rs 1,935. Again, ex-mill small grade was selling at Rs 1,785-1,820 a quintal and medium grade sugar in the range of Rs 1,825-1,880.

In Agra, the sugar market today opened higher, by Rs 5-10 a quintal, and expectation is that tomorrow it would open more or less at the same level. In Moradabad, the mill prices are high and projections are that they may rise by Rs 5-10 tomorrow.

The Mujaffarnagar sugar market too opened stronger, by Rs 5, today and is expected to rise by Rs 10-15 tomorrow. In Majhola too, the sugar market opened high and it may go further up by Rs 10 a quintal tomorrow.

In Saharanpur, the mill rate opened higher, by Rs 10, and may go further up in the days to come. Traders are expecting the sugar markets to rise by Rs 20 a quintal tomorrow throughout Uttar Pradesh, Indiancommodities.com sources said.

In Maharashtra, the Akola sugar market opened stronger, by Rs 5-8, and it may rise by Rs10-15 tomorrow. In Latur, the market today opened more or less flat, but it may go up by Rs 10 in the near future.

The Shrirampur market now remains more or less stable, but is expected to move up for some time. The Nagpur market today opened stronger, by Rs 5-10, and is likely to stay stable tomorrow. The Pune market too opened on a high note. The Nanded market too remains flat. Across Maharashtra, the sugar markets, on an average, would move up by Rs 10-15 in the days to come.

As for Madhya Pradesh, the sugar market opened stronger, by Rs 5-20, in Pipariya and is expected to remain stable for some time. In Bhind, Vidisha and Dabra, the markets currently remain firm. Traders feel the markets will gain Rs 10-20 throughout Madhya Pradesh in the near future.

In Ahmedabad, the market today opened with a gain of Rs 20 to Rs 1,825 (S30) and Rs 1,880 (M30) and is expected to stay firm in the near future. The Surat market opened on a high note, at Rs 1,780 (S30) and Rs 1,830 (M30), and is expected to remain stable tomorrow.

In Rajasthan, the Alwar market opened higher by Rs 15-20 at Rs 1,875 (M30) and Rs 1,855 (S30) and is expected to remain firm for some time. The Gangapur market opened much stronger, by Rs 25-30, at Rs 1,875 (M30) and Rs 1,865 (S30), and is likely to go up further by Rs 10-20 tomorrow on rising demand from local retailers.

In Jaipur too, the market opened higher, by Rs 15-30, at Rs 1,840 (M30) and Rs 1,810 (S30), and the prices may go up by Rs 10-15 in the coming days. The Udaypur market opened stronger, by Rs 15-20, at Rs 1,920 (M30) and Rs 1,890 (S30) and may move up by Rs 20 in the near future. The market players said sugar prices may rise by Rs 20 tomorrow throughout Rajasthan.