Concerns about a drop in sugarcane production due to insufficient monsoon rainfall, combined with rising demand for sugar during the summer and upcoming festival season, have resulted in a surge in commodity prices.
According to Agrimandi.live, an analysis and research company on agricultural commodities, sugar prices have risen by Rs 30 to Rs 80 per quintal in the last one week. The ex-mill prices of sugar in Kolhapur ranged between Rs 3,400 to Rs 3,480 per quintal, while in Muzaffarnagar, it remained between Rs 3,650 to Rs 3,680 per quintal.
Mansing Khorate from Atharv Intertrade emphasized that sugar production has witnessed a decline in comparison to the previous year, accompanied by relatively low sugar stocks. The prolonged absence of rainfall this year may adversely impact next year’s sugar production as well. Consequently, these factors have contributed to an increase in domestic sugar prices.
Pawan Mohite, the proprietor of Suvidha Traders, said that retail prices of sugar have risen by Rs 2 per kilogram in the past fifteen days, with the current selling price standing at Rs 42 per kilogram.
With the onset of the festive season in Maharashtra and throughout the country in the upcoming months, the demand for sugar is expected to further rise, potentially leading to an increase in prices.
Recently, the Indian Sugar Mills Association (ISMA) revised the country’s sugar production estimate for the current season, projecting it to be 328 lakh tonnes, down from the initial estimate of 340 lakh tonnes. The downward revision was made due to a fall in sugar output in Maharashtra to 105 lakh tonnes in the 2022-23 season, from an earlier projection of 121 lakh tonnes.
To ensure stable sugar prices in the domestic market and control inflation, the government has allowed the export of only 6 million tons of sugar this year. In the current season, the government had not permitted a second tranche of sugar exports. In the previous season, India had exported a record 110 LMT of sugar.
