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Rs 23.50 a kilo: Sugar price jumps 15% in 3 months

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Nisha Nambiar

Posted: Mar 07, 2009 at 0259 hrs IST

Pune The last three months have seen sugar prices shooting up by almost 15 per cent in the retail market. From Rs 20.50 a kg in December, it has risen to Rs 23.50 now. If sugar industry experts are to be believed, the price will hover at this mark and not come down till after the elections.

The total sugar production for the state recorded till Thursday was 42.84 lakh tonne in comparison to last year’s 56.95 lakh tonne for the same period, accounting for a drop of 14.11 lakh tonne. While the recovery is 11.35 per cent at present, it was 11.78 per cent, the same time last year. The cane crushed this year was 375.53 lakh tonne as against last year’s 483.41 lakh tonne.

“The retail prices are always Rs 4 more than the ex-mill price. At present, the ex-mill price is Rs 19.50 and that is the reason the prices have risen in the retail market,” said managing director of the Maharashtra State Cooperative Sugar Factories Federation Prakash Naiknavare.

With yield coming down to 69 tonne per hectare as against 74 tonne per hectare in 2007-08, an increase in prices was bound to happen, said Naiknavare. He also attributed the demand-supply gap to the adverse climatic conditions, with a drought-like situation in July and the cane price decided as late as October last when the sugarcane farmers had almost finished with planting the cane.

“Reduced production and recovery and less sucrose production, all contributed to the rise in prices,” he said.

The sugar industry is hoping that the government will take some strong measures to lower the prices but that was not likely until the elections.

The overall cane production in the country is slated to be around 165 lakh tonne this season. The state is one of the major sugar producers in the country.

Rajendra Chavan, who took over as the sugar commissioner a fortnight back, is set to study the increasing prices and make appropriate recommendations to the government. “I have just joined and will take up the issue soon,” he said.

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