Keeping in view the strong demand for sugar for upcoming festivals of Onam, Raksha Bandhan, and Krishna Janamashtami, an additional quota of 2 LMT (over and above 23.5 LMT already allocated for the month of August 2023) is being allocated for this month, the government said today.
The additional sugar in the domestic market will ensure reasonable prices all over the country.
Despite a 25 per cent increase in international sugar prices in the last one year, the average retail price of sugar in the country is about Rs 43.30 per kg and is likely to remain in range bound only. There has been less than two per cent annual inflation in the country in sugar prices in the last ten years.
During the current Sugar Season (Oct-Sep) 2022-23, India is estimated to have production of 330 LMT sugar after diversion of about 43 LMT for ethanol production. Domestic consumption is expected to be around 275 LMT.
At present stage, India has sufficient sugar stock to meet its domestic demand for remaining months of current SS 2022-23 and optimum closing stock of 60 LMT (sufficient to meet sugar consumption for two and half months) will be available at the end of this season i.e. 30 September.
The recent increase in sugar prices will cool down soon as each year during July-September, just before the next season, prices increase and then come down at the start of cane crushing. Thus, the price rise in sugar is very nominal and for a short duration.