Sugar price not to go beyond Rs 40 a kg: MSCSFF

Allaying fears of a further hike, Maharashtra State Co-op Sugar Factories Federation on Thursday said the sugar price is unlikely to cross the Rs 40/kg-mark, but it will start softening only from the start of 2011.

Allaying fears of a further hike, Maharashtra State Co-op Sugar Factories Federation (MSCSFF) on Thursday said the sugar price is unlikely to cross the Rs 40/kg-mark, but it will start softening only from the start of 2011.

HT Image

"The sugar price will start falling down slowly from January 2011, but it is likely to go past Rs 40 a kg in the interim," MSCSFF's Managing Director Prakash Naiknavare said here.

The end of festive season and increased production across the country would result in the price stabilising at the current level of Rs 37-38 a kg, Naiknavare said.

"The crushing season is in full swing. Factories in Maharashtra are also running at their peaks," he said, adding that the availability of sugar would increase in the market from here on.

Sugar contributes about 20 per cent to food inflation, a further hike in the price would lead to higher inflation.

The latest ex-mill sugar price for S-30 variety is Rs 3,165 per quintal and for M-30, it is Rs 3,275 per quintal.

"These prices when compared with the same period last year are almost 75-80 per cent more. The main reason of price spurt has been the unprecedented rise in global sugar prices and the mismatch between demand and supply within the country," he said.