Date:29/11/2005 URL: http://www.thehindubusinessline.com/2005/11/29/stories/2005112902691200.htm

Back Sugar prices likely to rule firm

Dhimant Bhatt

Mumbai , Nov. 28

SPOT sugar prices are likely to rule firm this week on fresh upcountry buying and lower stocks with mills.

Sugar prices at the check-post deliveries moved up by Rs 25-30 per quintal on Monday on reports of fresh buying in Gujarat.

There are talks in the market that Maharashtra might get a lower free sale allocation for next month.

Check-post delivery prices were quoted at Rs 1,855-1,910 a quintal for medium grade and Rs 1,815-1,845 a quintal for small grade, a trader said.

"There are some fresh enquiries from Gujarat and other centers but local demand is low. On the other hand, ready stocks with mills have reduced compared with previous months," a local trader said.

Ready prices of medium grade (M-30) at Vashi APMC market were up Rs 15-20 at Rs 1,882-1,955 per quintal over the previous day, while small grade (S-30) was up Rs 10-15 at Rs 1,830-1,861 per quintal over the previous day.

"The Maharashtra State may get about 2.33-2.34 lakh tonnes of free sale allocation for December," another trader said.

The State has been allocated 2.32 lakh tonnes for the current month, out of a national free sale quota of 12 lakh tonnes.

The Government announced national quota of 11 lakh tonnes for the next month.