1 week ago
Sugar Prices Rise as Production Falls; Government Imposes Supply Measures
Sugar has become more expensive, rising from Rs.
48.18 to Rs.
55.70 per kilogram.
This can make sweets and other confectionery products cost more.
One reason is that factories produced less sugar than expected.
People are also using a lot of sugar at home and during the festive season.
Some sugar was exported to other countries, which reduced the amount available locally.
International sugar prices also pushed prices higher.
The government says the increase was not caused by diverting sugar to make ethanol.
It has limited how much sugar dealers and bulk buyers can store.
The government also approved duty-free imports and expects new production to improve supplies after October.
The retail sugar price rose from Rs. 48.18 per kilogram in July to Rs. 55.70 in August.
Sugar production was 280 lakh tonnes, below the estimated 293 lakh tonnes, a 5 per cent shortfall.
High domestic consumption, 8 lakh tonnes of exports, international prices and El Niño concerns added to price pressures.
The government imposed a 400-tonne stock limit on dealers until November 30 and a 15-day limit for bulk consumers from September 1.
The government approved duty-free imports of 1 million tonnes of raw sugar and ordered joint stock verification at mills.
- Who
- Sugar producers, dealers, bulk consumers and the Union Ministry of Consumer Affairs, Food and Public Distribution are involved.
- What
- Sugar prices increased, prompting the government to introduce stock limits, imports and stock checks.
- Where
- The measures apply to the domestic sugar market.
- When
- Prices rose from July to August; dealer limits apply until November 30, bulk-consumer limits begin September 1, and the new crushing season begins in October.
- Why
- Production was below estimates, while domestic consumption, exports, international prices and fears of lower future output increased price pressure.
Key facts
- July sugar price
- Rs. 48.18 per kilogram
- August sugar price
- Rs. 55.70 per kilogram
- Estimated production
- 293 lakh tonnes
- Actual production
- 280 lakh tonnes, a 5 per cent shortfall
- Sugar exports
- 8 lakh tonnes had already been exported
- Dealer stock limit
- 400 tonnes until November 30
- Approved imports
- 1 million tonnes of raw sugar duty-free
- Expected October production
- More than 1 million tonnes
Sources
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