Sugar to stay firm

COMMODITY SPIKES

Sugar prices are likely to remain firm this week on the back of lower release of non-levy (free sale) quota by the government for July.

The release of 1 million tonne sugar for July is lower than 1.2 million tonne released in last year July. The total release of 3.6 million tonnes for the July-September quarter is also lower than corresponding release of 4 million tonnes last year. The creation of an additional 3 million tonne buffer stock by the government has also helped arrest the decline in sugar prices. Spot prices have already firmed up by Rs 30-40 a quintal to Rs 1350 due to lower release and buffer stock creation. Sugar analysts predict prices to remain firm for this week. Sugar M futures for July delivery has also firmed up from Rs 1325 to Rs 1363 a quintal in the last week.

It's a hot potato

Potato prices are expected to trade on the higher side this week as the stocks in cold storages are getting exhausted and demand is buoyant.

"Potato is likely to remain bullish this week as 30-35 per cent of cold storage stocks have been used and about 10 per cent will be used for seed purpose. Moreover, demand for potato is higher during the monsoon period", said a Karvy analyst.

Potato is primarily a rabi crop and it gets harvested in January-February. No major arrival is expected before December.

Arrival in small quantities will be seen in Hasan, Karnataka, where it is sown as kharif crop but it will not be sufficient to impact prices. Therefore, prices are expected to remain firm till October-November, she added.

At the National Commodity and Derivatives Exchange, potato futures for July delivery have moved from Rs 690 to Rs 700 a quintal in the last week.