Sugar prices fall sharply, but jaggery remains expensive ahead of festive season
Sugar prices have fallen to around Rs 52/kg from Rs 72, offering festive relief, while jaggery remains firm at Rs 74/kg amid strong demand and limited fresh production. Jaggery prices are expected to stay elevated through Diwali as production resumes only after Dussehra or December 15.
Falling sugar prices have brought some relief to consumers ahead of the festive season, but jaggery prices continue to remain firm, creating an unusual price gap between the two sweeteners, Lokmat reported.
Wholesale sugar prices have declined to around Rs 52 per kg, from nearly Rs 72 per kg during the recent price surge. In contrast, jaggery prices are still hovering around Rs 74 per kg.
Traders said such a wide gap between sugar and jaggery prices is unusual and is being witnessed for the first time in recent years. While sugar prices have come under pressure following government measures to improve availability and curb stock accumulation, jaggery prices have remained firm due to strong festive demand.
The government’s decision to limit sugar stocks held by bulk consumers to 15 days of consumption during September has also affected market availability. The release of excess stocks into the market has increased supply and contributed to the decline in sugar prices.
Jaggery, however, is facing a different market situation. Demand typically rises during the festive season as the product is widely used in tea, beverages, sweets and various food preparations. Demand from rural areas has also increased with Pola approaching, providing further support to prices.
Jaggery prices unlikely to fall before Diwali
The supply situation is expected to keep jaggery prices firm in the near term. The jaggery-making season in Latur district has ended, and production units are expected to resume operations only after December 15.
Meanwhile, jaggery-making units in Kolhapur and Karnataka are likely to restart after Dussehra. With fresh production still some time away, traders do not expect a significant decline in prices before Diwali.
Latur jaggery is currently selling at around Rs 76 per kg in retail markets, making festive purchases more expensive for consumers.
The contrasting movement in sugar and jaggery prices has created an unusual market scenario. Sugar, which had become significantly more expensive during the recent rally, is now seeing a sharp correction following government intervention, while jaggery continues to remain costly because of strong demand and limited fresh production.
Traders expect the price difference to remain for some time, with jaggery prices likely to stay firm through the upcoming festive period.
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Source : ChiniMandi
