Wholesale sugar prices have soared to a seven-year high, touching .₹ 40/kg in Maharashtra, the level beyond which the central government may take action.
The last time price sugar price had touched .₹ 40/kg was in January 2010 for M30 grade sugar. However, this price had lasted for only about eight days. The Central government had made it clear earlier that it does not want prices to rise higher than .₹ 40. Prices touched this level on Tuesday when the Dyaneshwar Shahakari Sakhar Karkhana in Ahmednagar district of Maharashtra sold L grade sugar that has the largest grain size.
The L grade sugar is produced in small quantities. However the price of the M grade sugar, consumed largely by the households, was .₹ 39/kg, close to the government’s comfort level .₹ 40/kg.
Anil Shevale, managing director, Dyaneshwar SSK said, “There is some increase in demand, which had declined after demonetisation, due to Sankranti. We expect sugar prices to remain stable at .₹ 39/kg to .₹ 40/kg.”
Industry experts said the rise is supported by the fundamentals, not speculative. Dyaneshwar’s sugarcane crushing operations closed in exactly 49 days, it’s shortest season ever since the mill was set up 40 years ago. Wholesale sugar prices in Mumbai are almost similar to mill rates