Sugar Price Hike: Another major shock is waiting for the common people. During the festive season, sugar prices have surged dramatically. In West Bengal, the retail cost has climbed to as much as Rs 70 per kilogram. The central government has already implemented several important measures to manage sugar prices.
In just a month, prices have increased by Rs 20. Traders in West Bengal have reported that sugar prices have gone up by Rs 20 per kilogram over the last month. Recently, in the past four to five days, there has been a sudden 10 percent spike in prices. Similar price hikes have been observed in sugar-based products such as jaggery, batasha, and nakuldana. Sushil Poddar, the president of the Confederation of West Bengal Trade Associations (CWBTA), mentioned that sugar mills are not regulated, and wholesale prices have already reached Rs 65 per kilogram.
Poddar stated, “There is no regulation on sugar mills. Wholesale prices have already increased to Rs 65 per kg, and retail prices are expected to hit around Rs 70 per kg. The rising demand for sugar for ethanol production is a key factor behind this. Additionally, the excessive blending of ethanol is now causing issues for vehicles.” He expressed concern about the sudden rise in sugar prices just before the festive season, which spans from September to November. He noted that the government’s allowance to import 1 million tonnes of raw sugar will not suffice to curb the price increase, and further intervention is necessary. He pointed out that 1 million tonnes of sugar only meets the country’s demand for about two weeks.
Are sugar mills depleting their reserves?
However, an official from a major sugar mill company indicated that crushing operations concluded in April, and mills are currently drawing sugar from their reserves. He added that there is little more they can do at this moment. Meanwhile, West Bengal Minister Dilip Ghosh attributed the rise in sugar prices to hoarding rather than ethanol blending.
Government actions
The central government has authorized sugar mills to import up to 1 million tons of raw sugar, marking the first such action in nearly ten years. Additionally, the government has set stock limits for bulk buyers who consume more than 10 tons of sugar each month. They are limited to holding a stock equivalent to 15 days’ worth of sugar.