Sugar prices up on lower free sale quota

SUGAR prices have moved up Rs 20-30 a quintal on the news of lower free sale quota of 11 lakh tonnes released by the Government for next month, amid continued demand from retail and bulk consumers. Sugar medium grade prices at the check-post delivery in Mumbai were up Rs 25 at Rs 1,730-1,748 per quintal late evening.Small grade prices were also up Rs 20 at Rs 1,700-1,720 per quintal over morning rates.

Ex-mill prices for both grades were up Rs 25 per quintal over the morning levels, a trader said. The Centre on Wednesday released free sale sugar quota of 11 lakh tonnes for May. With a levy quota of 2.16 lakh tonnes, the total availability of sugar for the month would be 13.16 lakh tonnes.

Free sale quota for April is higher by one lakh tonnes at 12 lakh tonnes, compared to the May quota. Spot prices may improve marginally on increased demand as sugar consumption increases during summer season but steady supply will continue, a local trader said.

Sugar May contracts at the NCDEX (National Commodities Exchange) also moved up on Wednesday on sustained buying support by some operators.

Sugar M-grade May contracts ended at Rs 1,828 per quintal, up Rs 6 per quintal over the previous close. Trading volume has increased to an average of 30,000 tonnes in the last two days. Open interest as on April 27 was 80,290 tonnes.

-News Bureau
Hindu Business Line
Date: 17 April, 2005