Wholesale sugar prices in Kerala surge Rs 520 per quintal in a month
Sugar prices in Kerala have risen sharply, with wholesale rates increasing ₹520 per quintal in a month. Traders attributed the surge to higher sugarcane diversion for ethanol production, El Niño-related crop concerns, and export restrictions aimed at safeguarding domestic sugar supplies.
Kozhikode: Sugar prices in Kerala have risen sharply over the past month, with traders attributing the increase to higher diversion of sugarcane for ethanol production under India’s E20 petrol programme and concerns over lower sugar output.
Wholesale sugar prices have increased by Rs 520 per quintal in the past month, rising from around Rs 4,380 per quintal in June to nearly Rs 4,900 per quintal. Retail sugar prices are also expected to increase by up to Rs 6 per kg, according to traders, Mathrubhumi reported.
They said the growing use of sugarcane for ethanol production to meet demand under the E20 fuel blending programme has reduced sugar availability, supporting prices.
India, the world’s second-largest sugarcane producer, grows the crop mainly in Maharashtra, Uttar Pradesh, Karnataka and Tamil Nadu. Kerala depends largely on supplies from Maharashtra for its sugar requirements.
Traders also cited delayed monsoon rains linked to the El Niño weather pattern as another factor affecting sugarcane cultivation and raising concerns over sugar production.
They said ethanol production from sugarcane has become more remunerative for sugar mills than sugar manufacturing, encouraging greater diversion of cane towards biofuel production.
Meanwhile, the Central government has extended restrictions on sugar exports until September 30 to ensure adequate domestic supplies amid concerns over weather-related production risks and rising domestic prices.
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Source : ChiniMandi
