Uttar Pradesh : Hormuz Strait closure pushes Sulphur prices fourfold, prompting sugar mills to go Sulphur free
Sulphur prices have surged fourfold due to the Strait of Hormuz disruption, pushing Uttar Pradesh sugar mills to shift toward sulphur-free sugar. Rising costs and supply shortages are accelerating tech upgrades, while spillover effects hit ethanol output and plastic supply chains.
The closure of the Hormuz Strait has caused Sulphur prices to surge sharply, accelerating a shift among Uttar Pradesh sugar mills towards Sulphur free sugar production, with five mills in the state expected to install dedicated units this year.
Deepak Guptara, General Secretary of the Uttar Pradesh Sugar Mills Association (UPSMA), and Prof. Narendra Mohan, advisor to UPSMA and former Director of the National Sugar Institute, shared these details at a press conference on Tuesday, Jagran reported.
Guptara said that over the past one and a half months, Sulphur prices have risen from Rs 15,000 per tonne to Rs 60,000 per tonne — a fourfold increase driven by the Hormuz Strait closure, which has disrupted imports of Sulphur sourced from Morocco. The price surge and the resulting supply crunch have pushed mills to upgrade their processing technology.
Of the 122 sugar mills currently operating in the state, 15 are already producing Sulphur free sugar, according to Guptara. He said the remaining mills are now moving in the same direction, supported by growing health awareness among consumers, which has driven retail demand for Sulphur free sugar.
Uttar Pradesh’s sugar mills that are also engaged in ethanol production have been among the most affected by the Sulphur price shock. Guptara noted that mills in the state are currently producing around 170 crore litres of ethanol, which is being supplied to West Bengal, Delhi, Bihar, Odisha and several other northern states.
The ripple effects of the United States-Iran conflict and the restricted movement of petroleum tankers through the Hormuz Strait are also being felt in the plastics sector. Crude oil price pressures have driven up the cost of plastic granules, creating a shortage of plastic bags used for grain procurement at distribution centres.
Anoop Sachan, in charge of the Ghatampur centre under the Food and Civil Supplies Department, said that the rise in crude oil prices had made it impossible to procure plastic bags. As an interim measure, the department has begun collecting jute bags from ration dealers, with around 3,000 bags gathered so far. Sachan said these bags would first be registered on the department’s portal before procurement activity resumes. He added that some bags remain available, allowing limited procurement to continue in the meantime.
To Read more about Sugar Industry continue reading Agriinsite.com
Source : ChiniMandi
