Business OpportunitiesSugar prices at all-time high of Rs 41.5 a kg
Surging sugar prices today became more bitter for consumers as they rose to an all-time high of Rs 4,150 a quintal at the wholesale market on increased buying for the current festival and marriage season amid widening demand-supply gap.
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The sweetener, which is already trading double to Rs 41 a kg in retail market over the last one-year, is likely to scale more heights as demand for the commodity rose sharply during the last fortnight among bakers and hoteliers for major events like Christmas and New Year, marketmen said.
They said the demand for the ongoing marriage season and approaching festival of ‘Makar Sakranti’ might further boost the buying activity in the face of tight supply. According to the Consumer Affairs Ministry data sugar prices have gone up to Rs 41 in the local market here due to demand-supply gap.
Traders at the Delhi wholesale market said the sweetener might become more costlier as it has risen to Rs 4,150-4,250 a quintal in the in bulk trading against Rs 3,590-3,700 a quintal on December 19. They said there is restricted supply from mills on fall in production, while bulk users like soft drink manufacturers and retailers have placed more orders.
Sugar medium and small grade prices jumped further by Rs 100 each to Rs 4,150-4,250 and Rs 4,140-4,240 a quintal respectively. It had gained Rs 200 in previous session. Similarly, the sugar mill-gate prices, at which the companies sell from factories without duty, also rose in the range of Rs 100 to Rs 70 a quintal.
The sugar from Kinoni and Mawana mills rose by Rs 80 and Rs 70 to Rs 4,000 and Rs 3,970 a quintal respectively. Dorala mills rate rose by Rs 100 to Rs 3,980 a quintal.
A senior official with a leading sugar firm said the rise in domestic price is in sync with global prices, which touched $718 (Rs 33,229) a tonne in London. The continued restriction imposed by the Uttar Pradesh government on the movement of imported raw sugar also has a bearing on the recent spurt in sugar prices, he added.
Domestic sugar companies, which had contracted to import over five million tonne raw sugar till December 15, have gone slow on further contracts, even though the country needs another two million tonne to meet the demand-supply gap.
Sugar production from domestically grown sugarcane is pegged at 16 million tonnes, while annual demand is 23 million tonnes. The gap is being met through imports.