Low production may lead to rise in sugar prices

  • | Thursday | 23rd February, 2017

The 43 sugar factories in the region crushed only 147 lakh tonne sugarcane this year compared to 212 lakh tonne in 2015-2016. If the government decides to import sugar, prices could come down. KOLHAPUR: The retail price of sugar is likely to rise in the coming months owing to lower production. But if loses, it could import sugar to control price rise. The officials have estimated crushing of 155 lakh tonne sugarcane this season, which will be 57 lakh tonne less than that in the previous season.Vijay Autade, managing director of Shri Chhtrapati Shahu cooperative sugar factory, told TOI, "The poor monsoon has brought down sugar production.

KOLHAPUR: The retail price of sugar is likely to rise in the coming months owing to lower production. The results of Uttar Pradesh assembly elections also may affect the prices.The poor rains last year has lowered sugarcane cultivation in Kolhapur region comprising Kolhapur and Sangli districts. The 43 sugar factories in the region crushed only 147 lakh tonne sugarcane this year compared to 212 lakh tonne in 2015-2016. The officials have estimated crushing of 155 lakh tonne sugarcane this season, which will be 57 lakh tonne less than that in the previous season.Vijay Autade, managing director of Shri Chhtrapati Shahu cooperative sugar factory, told TOI, "The poor monsoon has brought down sugar production. The situation is similar in Karnataka and Tamil Nadu. This might lead to rise in prices. If the government decides to import sugar, prices could come down."The assembly election results in Uttar Pradesh, the second-largest producer of sugar in the country after Maharashtra, is also a decisive factor in sugar prices.Sources at the sugar commissioner's office said, "If the ruling party at the Centre wins the elections, it will not allow sugar import so that the factories can recover losses. But if loses, it could import sugar to control price rise."Sugar trader Atul shaha said, "The country will face sugar shortage in the coming months. The present wholesale price of Rs 3,750 per quintal would go up to Rs 4,000 to Rs 4,100 per quintal. The retail prices could go up to Rs 45 to 46 per kg. If the government imports sugar with lower import duty, it could hurt the domestic producers.

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