Sugar prices rise as output likely to be 9% lower than last year
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With sugar production expected to be 9 per cent lesser than last year, prices of the sweetener have already started rising, as they have gone up by Rs 1.25 per kg in the last one month in the retail market.
From Rs 41.05 per kg on April 2, the retail price of sugar rose to Rs 42.30 per kg on May 2.
Similarly, wholesale prices too have risen by Rs 124 per kg during the past one month.
From Rs 3,805 per kg on April 2, wholesale prices of sugar have risen to Rs 3,929 per kg as on May 2.
Last year sugar production was 357 lakh tonnes and the government had exported 100 lakh tonnes, sources said.
This year too, the production was expected to be high, however, suddenly production estimates fell and now it is expected that this year's output could be around 9 per lesser than last year and may be around 327 lakh tonnes.
Sources informed that due to fall in estimated output, sugar prices are rising.
They added that in order to provide relief to consumers, the Food and Consumer Affairs department is expected to release extra quota of sugar in the coming days.
