Sugar turns bitter for bulk seasonal consumers

Mumbai, Sep 4 (UNI) Wholesale spot sugar prices today became cheaper and quoted below Rs 1,800 to touch eight-months low at Rs 1,796 per quintal, mainly on larger free sale quota of 14 lakh tonnes for September, against 13 lakh tonnes for August consumption, traders at the sugar market here said.

Retail prices are likely to fall below Rs 20 per kg within a few days compared to present quoted between Rs 22 and Rs 25 per kg at the retail market in sympathy with wholesale prices, a leading retailer pointed out.

Traders received reports, ''In order check the spiralling prices in the open market, the Government has released 14 lakh tonnes of sugar as non-levy quota for the current month.'' With a levy quota of 1.77 lakh tonnes released already for distribution under the Public Distribution System, the total sugar available during September 2006 is 15.77 lakh tonnes, an official statement said.

The non-levy sugar released for September is required to be sold within the month and any unsold quantity at the end of the month would be converted into levy sugar.

With enough stocks in hand, the Government would not hesitate in releasing further quantities in case prices tend to increase, it added.

Local sugar prices of small grade quoted below Rs 1,800, touching eight-months low at Rs 1,796 per quintal with a net loss of Rs ten from the previous day's level.

While medium variety crashed by Rs 15 and quoted at Rs 1,830 per quintal on sustained heavy offers by stockists in view of larger stock arrivals from mills.

Similarly, sugar prices in ex-mill of small and medium grades fell by Rs ten each per quintal, on increased offers by stockists, the traders added.

Following were the spot sugar wholesale rates per quintal: Small grade: Rs 1,796/1,831, medium grade: Rs 1,830/1,890.

Ex-mill: small grade: Rs 1,780/1,795, medium grade: Rs 1,800/1,835.

UNI VD/AR MJ SKB1648