Uttar Pradesh: Sugar prices may rise if Hormuz route disruption continues, says expert
Rising disruptions near the Strait of Hormuz could push up India sugar prices, as sulphur costs—key for processing—have surged 4x. With most mills dependent on it, prolonged supply issues may increase production costs, unless faster adoption of sulphur-free technologies offsets the impact.
Kanpur: Sugar prices in India could rise in the next season if disruption in the Strait of Hormuz continues, a senior expert has warned.
Speaking at a press briefing, Narendra Mohan, former Director of the National Sugar Institute, said the supply of sulphur—an essential material used in sugar processing—has been affected due to issues along this key shipping route, Amar Ujala reported
He noted that a large share of sulphur used in India is imported through this route, mainly from Morocco. As a result, supplies have slowed and prices have surged nearly four times, rising from Rs 15 per kg to about Rs 60 per kg.
Mohan said around 85% of sugar mills in the country still depend on sulphur for processing sugar. In Uttar Pradesh alone, only 15 out of 122 mills have shifted to alternative methods.
Explaining the process, he said sulphur and lime are commonly used to clean sugarcane juice during production. With India crushing nearly 300 million tonnes of sugarcane each season, demand for sulphur remains high.
He added that alternative methods are available, where phosphoric acid and carbon dioxide can replace sulphur. These methods are already being used in some mills.
According to Mohan, sugar produced without sulphur is of better quality and is preferred by industries such as pharmaceuticals and beverage companies. He said many international producers have already adopted sulphur-free processing methods.
He cautioned that if supply issues continue, rising input costs could push up sugar prices in the coming season.
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Source : Chinimandi
