Retailers impose purchase limits as sugar price surge hits consumers

Online grocery platforms such as BigBasket are also restricting purchases, with larger quantities showing as unavailable or out of stock

A sharp rise in sugar prices ahead of the festive season has prompted retailers and online grocery platforms to restrict purchases by consumers, with DMart outlets in the city even limiting sales to five kg per bill.

Boards put up at its Satara road outlet state that customers will not be allowed to purchase more than five kg of sugar on a single bill. (HT)

Boards put up at its Satara road outlet state that customers will not be allowed to purchase more than five kg of sugar on a single bill. Online grocery platforms such as BigBasket are also restricting purchases, with larger quantities showing as unavailable or out of stock.

The restrictions come days after the Centre imposed stock limits on bulk sugar buyers from August 21 amid concerns over rising prices and possible hoarding ahead of the festive season.

Sugar prices in the retail market have risen to around ₹65 per kg, an increase of about ₹10 per kg from July. Prices are expected to remain under pressure in the coming days as demand rises during the festive season.

The Centre’s decision to impose stock limits on bulk purchasers was aimed at preventing excessive stocking and ensuring adequate availability in the domestic market. However, the restrictions have begun to affect retail consumers as some retailers have introduced limits on individual purchases.

Sweet shop owners said the increase in sugar prices would add to their production costs at a time when demand is expected to rise sharply during the Ganesh festival.

“As sugar prices have increased before the festive season, we may have to increase sweet prices. There is huge demand for sweets during Ganesh festival. On one hand, gas cylinders are not readily available and, on the other, the prices of sugar and other raw materials are increasing,” said sweet shop owner Raj Mishra.

Bakery producer Ariz Shaikh said the rise in sugar and cooking gas prices had already forced him to increase the prices of bakery products.

“Since sugar and gas prices are high, I have already increased the prices of bakery items. It is not in my control,” he said.

Market participants attribute the rise in sugar prices to a combination of factors, including concerns over sugarcane production, weather conditions and increased diversion of sugar for ethanol production.

Pune district collector Jitendra Dudi was contacted for details on sugar availability and the implementation of stock limits in the district, but he was unavailable for comment.