Uttar Pradesh: Sugar prices hit Rs 65/kg as festive demand approaches
Sugar prices in Lucknow have surged to a record ₹65 per kg, rising about ₹15 in just 15 days, as low stocks, lower production and strong festive demand tighten supplies. Traders say available sugar is currently meeting only around half of market demand.
Lucknow: Sugar prices have climbed to Rs 65 per kg in the retail market, the highest level reported so far, as low stocks and rising demand ahead of the festive season put pressure on supplies, Amar Ujala reported.
Traders said prices have risen by about Rs 15 per kg in the past 15 days. They said supplies are currently meeting only around half of market demand as stocks have fallen towards the end of the current crushing season.
Demand is expected to rise further with Raksha Bandhan, Ganeshotsav, Janmashtami and Diwali approaching, raising the possibility of another increase in prices.
Santosh Gupta, a retail grocery trader in New Hyderabad, said sugar was selling at Rs 48-50 per kg 15 days ago before rising to Rs 65. Wholesale trader Sanjay Jaiswani of Fatehganj said prices had crossed Rs 60 per kg for the first time.
Traders attributed the shortage partly to lower production. Sugar output this year is estimated to be about 5% below last year’s level, reducing stocks available in the market.
The new crushing season is expected to start in late October or early November. Traders said mills had diverted more cane towards ethanol production because it offered better returns, while higher demand for ethanol from petrol and alcohol producers also affected sugar production.
The shortage is also affecting sweet makers. Avinash Tripathi, a sweets trader and state vice-president of the UP Adarsh Vyapar Mandal, said demand for sweets is likely to rise over the next month as several major festivals approach.
Sugar accounts for about 20% of the ingredients used in sweets, while around 200 grams is required to make one kg of khoya, he said. Traders are receiving only about half the sugar needed to meet demand, he added.
Tripathi said raw material costs have risen by 25-30%, affecting profit margins despite a Rs 375 government relief on commercial LPG cylinders.
Meanwhile, the central government has imposed stock limits on dealers using more than 10 tonnes of sugar a month. Under the order, such dealers cannot hold more than 15 days’ stock from September 1 to November 30.
The period covers major festivals including Ganesh Chaturthi, Dussehra and Diwali, when sugar demand typically rises. Biscuit and confectionery manufacturers are also expected to build stocks ahead of the festive season.
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Source : ChiniMandi
