Tamil Nadu sugar prices hit record Rs 67/kg amid supply concerns
Sugar prices in Tamil Nadu surged to a record ₹67/kg from around ₹45 last month, amid lower cane production, alleged mill stockpiling and rising ethanol demand. With festive demand approaching, wholesalers urged action against hoarding and suggested imports to ease tightening domestic supplies.
Chennai: Sugar prices in Tamil Nadu have climbed to a record Rs 67 per kg from around Rs 45 last month, amid concerns over lower supplies and alleged stockpiling by sugar mills in Uttar Pradesh and Maharashtra, according to a local media report, stated DT Next.
The two states are major sources of sugar for Tamil Nadu. The reported rise in prices has been linked to a decline in sugarcane production in Uttar Pradesh and Maharashtra, which has been attributed to irregular monsoon rainfall.
Ethanol demand adds pressure
The rise in demand for ethanol is also adding pressure to sugarcane supplies. Higher crude oil prices have increased demand for ethanol, which is used in the production of E20 petrol.
With more sugarcane being used for ethanol, less cane is available for sugar production, adding to concerns over supplies and prices.
Festive demand may push prices higher
Sugar demand could rise further as the festive season approaches, with Vinayagar Chaturthi, Navratri and Diwali expected to increase demand from sweet manufacturers and other users.
The report said sugar mills are also building stocks in anticipation of higher festive demand, further tightening supplies in the market.
Wholesalers in Tamil Nadu have urged the government to act against alleged hoarding and take steps to stabilise prices.
“The government should take immediate action and control sugar hoarding. Moreover, since the sugar stock in India is low, the sugar price will be brought under control only if sugar is imported from abroad,” said Samuel Raj, a wholesaler from Koyambedu.
The sharp increase has raised concerns among traders and consumers, particularly ahead of the festive season when demand for sugar traditionally rises.
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Source : ChiniMandi
