Pune Sugar Prices Surge by Rs 5 Ahead of Diwali Festivities
Retail sugar prices in Pune have risen as demand increases before Diwali, with officials assuring adequate supply.
Retail sugar prices in Pune increased from Rs 54 to Rs 59 per kg.
Maharashtra has over nine lakh tonnes of sugar stock available.
Rising production costs and seasonal demand are driving price hikes.
In Pune, retail sugar prices have seen an increase of Rs 5 per kilogram in the last ten days, coinciding with the festive season leading up to Diwali. Traders attribute this rise to escalating millgate prices, heightened production costs, and a surge in seasonal demand. The president of the Pune Sugar Merchants Association, Ishwar Nahar, noted that wholesale prices have climbed from Rs 52 to Rs 54 per kg, while retail prices have moved from Rs 54 to Rs 59 per kg.
The festive season typically witnesses a rise in sugar prices due to increased consumption. Retailer Pranav Gugale anticipates that prices could reach Rs 60 per kg during the Diwali celebrations. However, Maharashtra's Sugar Commissioner, Sanjay Kolte, stated that there have been no official reports of retail price hikes and assured that the state has sufficient sugar stocks to meet the festive demand, with availability exceeding nine lakh tonnes.
Kolte emphasized that the commencement of sugarcane crushing operations would further enhance supply. The department is actively monitoring the market to prevent hoarding and to mitigate any attempts to create artificial shortages. The rise in sugar prices at the factory level has significantly influenced the increase in both wholesale and retail rates, with mills currently selling sugar at approximately Rs 50 per kg, compared to Rs 39 per kg during the same period last year.
Rajesh Tope, chairman of the Samarth Cooperative Sugar Factory, highlighted that rising production costs are challenging for mills to maintain lower selling prices. He stressed the need for better price realizations to ensure the financial sustainability of sugar factories. Additionally, Pratap Ohol, vice-chairman of the Maharashtra State Cooperative Sugar Factories Federation, pointed out that lower sugar recovery rates, currently below 10%, are a concern for the industry. This decline is attributed to poor sugarcane quality resulting from drought conditions in several regions of Maharashtra.
The increase in sugar prices has raised concerns among consumers, particularly as families prepare for Diwali, a time when they typically purchase larger quantities of sugar for traditional sweets. Local resident Meena Patil expressed her worries about the impact of higher prices on household expenses and urged government authorities to keep retail prices manageable to avoid further financial burden during the festive season.
