PUNE: Retail sugar prices in Pune have risen by ₹5 per kg in the past 10 days ahead of Diwali, with merchants attributing the increase to higher wholesale prices, rising production costs and seasonal demand.
Ishwar Nahar, president, Pune Sugar Merchants Association, said the wholesale sugar prices has increased from ₹52 to ₹54 per kg during the period, while retail prices had climbed from ₹54 to ₹59 per kg.
“Sugar prices tend to rise marginally during the festive season as demand increases. We do not foresee any further significant rise in prices in the run-up to Diwali,” he said.
Pune-based sugar retailer Pranav Gugale said retail prices were likely to hover around ₹60 per kg during Diwali.
However, state sugar commissioner Sanjay Kolte said his department had not received any feedback about the increase in retail prices.
“The availability of sugar in the state at present is over nine lakh tonnes, which is sufficient to meet demand during the festival. Moreover, sugar mills have started the sugarcane crushing season, which will increase sugar availability. Vigil is maintained to prevent hoarding aimed at creating an artificial scarcity in the market,” Kolte said.
One of the main reasons for increase in wholesale and retail prices is the higher rate at which sugar mills are selling the commodity. Mills are selling sugar at around ₹50 per kg, compared with ₹39 per kg during the corresponding period last year.
{{/usCountry}}One of the main reasons for increase in wholesale and retail prices is the higher rate at which sugar mills are selling the commodity. Mills are selling sugar at around ₹50 per kg, compared with ₹39 per kg during the corresponding period last year.
{{/usCountry}}Rajesh Tope, chairman, Jalna-based Samarth Cooperative Sugar Factory and a former NCP minister, said, “The production cost of sugar has increased considerably. Sugar mills will not be able to sustain operations if they continue to sell their produce at low prices.”
Pratap Ohol, vice-chairman, Maharashtra State Co-operative Sugar Factories Federation (MSCSFF), said the sugar recovery rate in the current crushing season was below 10%, more than one percentage point lower than in the previous season.
“A lower recovery rate means sugar production will be lower this year. The quality of sugarcane is poor this time because of drought in several belts where the crop is sown across the state,” he said.
The price rise has also raised concerns among households preparing for Diwali.
Meena Patil, a resident of Bopodi, said the increase would put additional pressure on household budgets during the festival.
“It will affect our kitchen budget during Diwali, as we prepare various kinds of sweets that require substantial quantities of sugar. Government agencies must ensure that retail sugar prices remain within the reach of ordinary consumers,” she said.