Festive flashpoint: Why sugar prices are rising sharply in India
· Business · India Today, Indian Express, Times of India
Retail sugar prices in major Indian cities have surged by nearly Rs 20 per kg over a fortnight to average around Rs 70 per kg. The price hike is driven by a supply shortfall and the diversion of sugarcane toward ethanol production under the government fuel-blending programme. In response to soaring prices, the Union government has permitted the duty-free import of 1 million tonnes of raw sugar until October 30. Additionally, stockholding limits for bulk consumers have been reduced to 15 days from September 1 to November 30 to curb hoarding. Industry representatives note that mills have faced financial losses over the past four years, selling sugar below production costs.
Why it matters
The sharp rise in sugar prices increases household grocery expenses during the peak festive season while prompting government interventions in trade and supply quotas.
Read the original report — India Today
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