Spot sugar prices improve on lower FSQ

Mumbai, Mar 30 | Updated: Mar 31 2007, 06:32am hrs
Sugar spot prices have moved up by Rs 10-15 per quintal on Friday mainly on fresh seasonal buying from retailers and bulk consumers supported by average lower inflows from mills in response to lower than expected free sale quota (FSQ) of 12 lakh tonne released by the centre for the next month on Thursday.

Sugar prices in the open market were Rs 10-15 up to Rs 1,500/1,520 per quintal for Small-30 grade and Rs 1,510/1,565 for Medium-30 grade over previous day. Check post delivery prices were also up by 10-15 per quintal on reduced inflows.

April FS quota is lower than the market expectation. It is even lower by 2.5 lakh tonne over April 2006 level. Hence, it is not enough to cater domestic demand, a local trader said.

The government released total 38 lakh tonne for the open market during April-June 2007 quarter. Sugar FS quota has been fixed at 12 lakh tonne for April, an official release said.

Prices may go up further in the next few days as direct consumption by household and season demand from bulk consumers are going significantly during the summer season, another broker said.

The government also extended the validity period of FSQ for the current month by another 15 days till April 15 enabling sugar mills to sell their unsold quantity during this extended period.