Sugar prices have surged ahead of Ga nesh Chaturthi, with retail rates touching nearly Rs 70 per kg in the open market and the wholesale price of a 50-kg bag rising to around Rs 3,150, adding to house hold expenses ahead of the festival. The increase has raised concerns among consum ers as sugar is a key ingredi ent in festive preparations, including sweets, modaks, cakes and other food prod ucts. A further rise could also push up prices at sweet shops, bakeries and other food businesses. Trader Deepak Harrikat attributed the increase to reduced supplies from sug ar factories and said prices could rise further.
However, the Centre has maintained that the country has ade quate stocks to meet domes tic demand until the next crushing season, attributing the rise to lower-than-ex pected production, weath er-related crop damage, festive demand and specula tion and hoarding. The Indian Sugar Mills Association has also said there is no actual shortage, describing the price rise as “not natural” and pointing to stockpiling by bulk consum ers and speculative trading. Retailers said they were caught between higher pro curement costs and consum ers already facing rising ex penses. “We are buying sugar at a much higher rate than earlier.
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When the wholesale price increases, the retailer also has to revise the selling price. We cannot absorb the entire increase,” said Raia re tailer Anthony Colaco. Margao resident Reena Naik said Rs 70 per kg was a considerable burden, par ticularly during the festival when families purchase sugar in larger quantities. Consumer Jennifer Dias also expressed concern over the wider impact of rising prices, while retailer Sushant Gaonkar said the approaching festival could intensify the pressure. The rise is also worrying small sweet shops, bakeries and food businesses, which could pass higher raw ma terial costs on to consumers.
The Centre has restricted bulk consumers to 15 days of inventory during the peak festival period and allowed duty-free imports of one million tonnes of raw sugar to ease supply pressures. Consumers, however, are hoping for price moderation before Ganesh Chaturthi.
