CH NEWS, KALABURAGI
Sugar prices have increased suddenly just as the festive season is approaching. This has made sugar bitter, and panic has started in the kitchen. The pockets of the common man have also been hit.
A month ago, it was Rs 40 per kg of sugar. Now it has crossed the Rs 52 mark. It is now being sold at retail at Rs 55 and above. Traders say that the price of sugar is continuously increasing in the market, and the main reasons are the decline in production, extreme weather conditions and the increasing demand during the festive season.
The holy month of Shravan has begun for Hindus. With the onset of the festive season, the demand for sugar has increased significantly. The increasing use of sugar in the preparation of various food items including sweets and bakery products has increased the demand in the market. When the demand is high and the supply is limited, the price naturally increases in the wholesale and retail markets. Traders are saying that this is also the reason for the price increase. As a result, it is not surprising that the price of sweets in the market will increase from now on.
Central government figures show that sugar production in the state is decreasing year by year. In 2022-23, it was 5.93 million tonnes in the state. However, it has been decreasing year by year and has come down to 4.81 million tonnes in the last financial year. Market experts analyze that this is due to lower production than export and local demand, which is causing the price to rise.
Sugarcane is the main ingredient for making sugar, but this time, Maharashtra and Karnataka, which grow sugarcane, have been hit by extreme weather conditions. Farmers are saying that this has reduced the yield of sugarcane. Sugarcane planting has also reduced in many places due to water shortage. If the rainfall continues to fluctuate further, there is a possibility that it will affect sugarcane production in the next season as well. Sources say that many sugar factories are focusing on ethanol production rather than sugar production as ethanol production is profitable. The blending of ethanol in petrol is increasing in the country. It is also said that production has been increased due to the demand for ethanol from abroad. Ethanol production has also affected the availability of sugar, reducing the amount of sugar available in the market. This is the main reason for the price hike, says a sugar factory official.
