Sugar prices continue to move up

The expected sugar production for the 2009-10 season that began in mid-October and will gather steam by mid-November is 180 lakh tonnes. While it is higher than that of the previous year,it falls short of the domestic sugar demand of around 230 lakh tonnes.

“The government needs to improve supplies,when the current season’s sugar begins to arrive in the market,” Gujarati said.

It is also not clear yet if the government policy to supply sugar at subsidised rates of Rs 20 per kg to Above Poverty Line families,which was largely responsible in reducing demand in the open market,will continue in November. District officials said it will be clear only next week.

However,PDS shops continue to supply sugar to Below Poverty Line families at Rs 13.5 per kg.

Traders said importing sugar is another option to rein in prices,but till October it was proving to be unfeasible as international prices were higher than domestic prices.

Last year,imports were not more than 20-25 lakh tonnes,however imported sugar is fine and powdered; while the Indian market demand is for crystallised sugar. At certain ports like Kandla and Nava Sheva,imported sugar is available at Rs 32 to Rs 33 per kg. But traders have to pay extra on transportation.