New Delhi: To cater to the high demand for sugar during the upcoming festive season, the government on Tuesday announced an additional allotment of 2 lakh tonne of sugar in the domestic quota for August, over and above 23.5 lakh tonnes already allotted to mills.
The decision takes into account the expected surge in demand during festivals such as Onam, Raksha Bandhan, and Janamashtami. It aims to maintain reasonable sugar prices throughout the country, benefiting consumers and traders alike.
“Despite 25% increase in international sugar prices in last one year, the average retail price of sugar in the country is about ₹ 43.30 per kg and is likely to remain in range bound only. There has been less than 2% annual inflation in the country in sugar prices in last 10 years,” the ministry of consumer affairs, food & public distribution said.
For the ongoing sugar season of 2022-23, India is projected to produce 330 lakh tonne of sugar after diverting about 43 lakh tonne for ethanol production. Domestic consumption is expected to hover around 275 lakh tonne, it added.
The country currently boasts sufficient sugar stocks to meet its domestic demand for the remaining months of the current season, with an estimated optimum closing stock of 60 lakh tonne available by September 30, 2023. This ample supply is enough to sustain sugar consumption for approximately two and a half month.
It’s worth noting that the recent uptick in sugar prices is likely to subside soon. Historically, sugar prices tend to rise between July and September, just before the start of the cane-crushing season. These increases are typically short-lived, and prices stabilize once the new season begins.
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Updated: 22 Aug 2023, 06:35 PM IST
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