Sugar Price Hike: In the last two weeks, an increase of 6 percent has been recorded in the prices of sugar in India. The reason behind the increase in prices is big and its effect will be seen on you too.
Sugar Price Hike: The sweetness of sugar may reduce as soon as the summer season starts. Sugar prices in India have seen an increase of more than 6 percent in the last 2 weeks (Sugar Price Hike in India). People associated with the sugar industry told the news agency Reuters on this matter that an increase of up to 6 per cent has been recorded in the prices of sugar in India in the last two weeks and the increase in prices may continue even further.
The biggest reason behind the increase in sugar prices is that this year there is a decrease in sugarcane production and there has been an increase in the demand for sugar in the wholesale market. In such a situation, after the increase in prices, the margins of sugar producing companies like Balrampur Chini, Shree Renuka Sugars, Dalmia Bharat Sugar and Dwarikesh Sugar are likely to improve. In such a situation, he will be able to pay sugarcane to the farmers at the right time.
Consumers will be hit by inflation
Where the farmers can get the payment of sugarcane at the right time due to the increase in prices, on the other hand, the sweetness of sugar can turn into bitterness for the common people. Food inflation may increase further after the increase in sugar prices. Along with this, the government’s plan to export sugar can also turn water. Significantly, there is a tremendous increase in the prices of sugar in the international market. Sugar prices have broken the record of the last several years.
Decrease in sugar production in Maharashtra
According to the report published in the Financial Times, the biggest reason behind the increase in the prices of sugar is that the production in the country’s largest sugarcane producing state Maharashtra (Maharastra) has fallen this time. Bad weather is behind the low production of the crop.
In such a situation, it has directly affected the sugar production of the country. In the financial year 2022-23, sugar production in Maharashtra is expected to be 105 lakh tonnes between October and September. On the other hand, 137 lakh tonnes of sugar was produced in Maharashtra during this period last year. In such a situation, the direct effect of reduction in sugar production is going to be visible on the prices.
Sugar demand increases in summer
There is a tremendous increase in the consumption of sugar during summer. Since April, the demand for sugar in the market increases due to the increasing temperature in the country as well as the consumption of cold drinks, ice cream etc. Along with this, the demand for sugar also increases due to the wedding season. Due to such rising prices, its effect will be seen on common people and companies.
