The current increase in the Sugar prices is due to lesser production of Sugarcane but government has also played a role by giving out statements that rates will rise further. Also, many of the businessman who had got license to stock sugar have been keeping lower stocks, resulting into more than actual shortage of sugar.
Our View: The black marketing is still on the market and people are making a lot of money by using the situation to their advantage.
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.
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