Sugar Price Hike: Inflation Hits New High as Prices Soar
On the issues of inflation and inflation on which Modi became the Prime Minister, his own government has created a new history of inflation. From daily vegetables to other daily necessities, people’s pockets are rapidly shrinking as the prices are high.
Meanwhile, even though there is bad news in the festive season, people’s eyes are still open and they are still enjoying Hindu-Muslim-Pakistan news. Because there has been a huge increase in the price of sugar in the country due to the concern of reduced production of sugar. Sugar prices have increased by more than three percent in a fortnight and have reached the highest level in six years, traders informed. At the same time, prices and growth are expected in the coming months.
Due to the Rains, the Concern about Sugarcane Production Increased
Low rainfall in major sugar producing areas of the country has raised concerns about sugarcane production in the coming season. Therefore, the price of sugar is increasing in the market. Foodgrain inflation is likely to increase due to price hike. In such a situation, exports to China can be stopped.
Fear of a Big Drop in Sugar Production
Ashok Jain, president of Bombay Sugar Merchants Association, said that sugar mills are afraid of a big drop in production in the new season due to drought. They are not ready to sell sugar at low price. Manufacturers Balrampur Chini, Dwarikesh Sugar, Shree Renuka Sugars and Dalmia Bharat Sugar will increase their margins, which will help them pay farmers on time, traders said.
Impact on Sugarcane Production in Maharashtra and Karnataka
Sugar production is likely to decline by 3.3 per cent to 31.7 million metric tonnes in the new season starting October 1 as low rainfall is likely to affect sugarcane production in Maharashtra and Karnataka. These two states account for more than half of the total sugarcane production.
During the Festive Season, the Price of Sugar Will Increase Further
On Tuesday, sugar prices touched Rs 37,760 per metric ton, the highest since October 2017. Prices in India are 38 percent below the global white sugar benchmark. Sugar prices may rise further in the coming months as sugar stocks depreciate and the festive season approaches, a Mumbai-based trader said.
In this regard, traders said that due to the increase in the price of sugar, the Indian government may prevent the export from being allowed in the new season. Factories were allowed to export only 61 lakh metric tonnes of sugar in the current season till September 30, while a record 11.1 million metric tonnes of sugar was exported last season.
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