New Delhi: Sugar prices have become stronger on anticipation higher demand in the upcoming festival season and lower release in January by the government. This could mean higher prices for biscuits, cold drinks, confectionery, chocolates and other processed food items of urban mass consumption. The prices have shown a rally of Rs 5 on ex-factory prices. The rise is unusual because the Maharashtra output has grown up by 3.4%. The total production which was projected to be 16m tonnes is being revised to 15.5 million tonnes against a requirement of 23 million tonnes.

Our View: Though government has shown that it had taken measures to control prices but the steep price movements and the way the information has flow creates some suspicion.  The agricultural minister, Mr Sharad Pawar, has personal interest in many of the Sugar Mills thus it is hard to believe things to be happening right for the countrymen.

Link:http://economictimes.indiatimes.com/articleshow/5414839.cms