Sugar has taken a bitter turn ahead of Diwali. In fact, the price of sugar has risen by ₹5 per kg in Pune. Let's find out the real reason behind this price increase.
Sugar Price Hike: Sugar becomes expensive before Diwali
Even before Diwali, inflation has begun to disrupt household budgets. Sugar prices have now risen. In Pune, the retail price of sugar has increased by ₹5 per kg in the last 10 days. This means that buying 5 kg of sugar now costs ₹25 more.
However, the only relief in this increase is that Maharashtra officials have stated that the state has sufficient sugar stocks and that there will be no shortage of supply during the festival season. Find out here the latest sugar prices and the reasons for the increase.
How much is sugar available per kilogram?
According to the Pune Sugar Merchants Association, the price of sugar in the wholesale market has risen from Rs. 52 to Rs. 54 per kilogram in the last 10 days. Meanwhile, in the retail market, the price has risen from Rs. 54 to Rs. 59 per kilogram.
The demand for sweets increases during festivals and, according to sugar sellers, the retail price during Diwali can even go up to Rs 60 per kg.
What's driving the price hike?
Diwali demand isn't the only reason sugar prices are rising. Factors like production costs and a decrease in the rate of sugar production from sugarcane are also contributing factors. Sugar mills are currently selling sugar at ₹50 per kg, compared to ₹39 per kg last Diwali.
Sugar mills say that production costs have increased, making it difficult for them to sell sugar at low prices. Furthermore, weather is also affecting the sugar production. In Maharashtra, the sugar recovery rate for the current crushing season has been reported to be below 10%, meaning less sugar is being produced from sugarcane.
Will there be a sugar shortage this Diwali?
Amid rising prices, people are wondering if there could be a shortage during Diwali. According to Maharashtra Sugar Commissioner Sanjay Kolte, the state currently has over 900,000 tons of sugar, and sugar mills have begun crushing sugarcane. Therefore, it's expected that there won't be any shortages in sugar stocks.
