Indian sugar mills association

Jaggery output hit as farmers divert cane to sugar mills for better price

Date:	26 Dec 2011

Source:	The Economic Times

Reporter:	Jayashree Bhosale

News ID:	798

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PUNE: Sugar mills are paying a higher amount to cane farmers and this has hampered jaggery production this year. But demand for jaggery is topping supply due to the upcoming Sankranti and Pongal festivals in January, resulting in an increase in jaggery prices across the country.

Along with the less availability of cane for jaggery units, labour shortage and power cuts have affected jaggery production in Maharashtra and Karnataka.

A very high cane price in Uttar Pradesh has diverted cane to sugar mills and jaggery production in the state has declined so much that it is buying the traditional sweetener from Madhya Pradesh. Butthiraju, managing director of Immidisetti Ramakrishniah Sons at Anakapalli market in Andhra Pradesh, said, "There is high jaggery production in Kareli in Madhya Pradesh which is now supplying to Uttar Pradesh."

Jaggery prices in Maharashtra and Uttar Pradesh are higher by about Rs 3/kg compared to Anakapalli. The increase in prices in Uttar Pradesh and Maharashtra has arrested the downward trend in jaggery prices in Anakapalli. Wholesale jaggery prices in Uttar Pradesh range from Rs 23.50/kg to Rs 25/kg.

"Usually jaggery prices in Uttar Pradesh are less than Maharashtra`s. However this year, prices in Uttar Pradesh are at par with Maharashtra prices," said Mohan Oswal, former president of the Jaggery Traders Association of Pune. The chikki type of jaggery used for making Sankranti sweets commands a price of Rs 28/kg to Rs 31/kg. The price of Kolhapur jaggery, known for its superior quality, is in the range of Rs 23.50/kg to Rs 30/kg, a gain of Rs 1/kg in the last few days.

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