Sugar prices rise in Pune before Diwali, retail rate reaches Rs 59 a kg

Just ahead of Diwali, households in Pune are paying more for sugar. The retail price in the city has risen by Rs 5 a kg over the past 10 days. Traders say there are three reasons: costlier supply from sugar mills, a rise in wholesale prices and higher demand for the festival.

Ishwar Nahar, president of the Pune Sugar Merchants Association, said the wholesale price rose from Rs 52 to Rs 54 a kg during this period. In the retail market, sugar has climbed from Rs 54 to Rs 59 a kg.

The increase comes as homes prepare sweets and other festive dishes, adding to the pressure on household budgets.

According to Nahar, a major reason for the rise in both wholesale and retail prices is that sugar mills themselves are charging more. Mills are currently selling sugar at about Rs 50 a kg, against about Rs 39 a kg at the same time last year.

Traders also say that the cost of production has gone up and that there is seasonal demand. Both have pushed prices higher.

There is, for now, no cause for concern over the availability of sugar in Maharashtra despite the increase. The state has more than nine lakh tonnes of sugar available, which is considered enough to meet demand during the festival days.

The sugar mills have also begun the current cane crushing season. This could support supply in the coming weeks.

With stocks available and crushing under way, the recent rise appears to be linked to prices being set at the mill and market level rather than to any immediate shortage of sugar.

Even so, as Diwali shopping picks up, buyers are likely to feel the effect of the higher retail price.