कुल पेज दृश्य

14 अगस्त 2008

Sugar prices jump to three-year high on rising demand

NEW DELHI: Driven by strong demand ahead of the festival season, sugar prices have risen to a three-year high in the country, raising fears that climbing rates of the sweetener may spur inflation.

Wholesale prices of sugar have gone up to Rs 20 per kg in Kolkata, while in other places, which are ruling in the range of Rs 18-19 per kg.

“We fear prices of sweets will be very high during this Raksha Bandhan if the government does not control sugar prices,” a Delhi-based home maker Vandana Sharma said.

Currently, retail prices of sugar are ruling in the range of Rs 20-22 per kg level in the national capital. Six weeks back, sugar was available at Rs 16-17 a kg. Despite bumper crop, prices have risen sharply mainly due to increasing demand ahead of the festival season, market observers said.

However, in spot markets today, sugar prices fell marginally on reports that the government may consider taking more steps, including releasing additional quantities of the sweetener in open market, to curb the rising prices.

Since the government controls the sector, prices are not reflected as per demand and production, but it depends on the free sale quota released by the Centre. The government has fixed a free sale quota of 9 lakh tonnes each for August and September. It further announced release of 2 lakh tons for this month and 3 lakh tons for September to control prices.

“The availability of sweetener during peak festival period (August-September) is the lowest in the last three years,” Karvy Comtrade Analyst Vireesh Hiremath said. - PTI

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