Sugar, jaggery lose sweetness as prices soar ahead of festivals

Dharwad: For a commodity that rarely draws attention beyond the kitchen shelf, sugar has suddenly become a talking point across markets.Prices have surged sharply in recent weeks, with consumers now staring at a spike just as the festive season and demand for sweets begin.Earlier this month, one kg sugar was sold at Rs 50 in the market and by the end of the month, the price spiked to Rs 72 per kg, shocking consumers.The spike comes at a time when demand traditionally begins rising from August through November, with Panchami, Ganesh Chaturthi, Dasara and Deepavali driving consumption of sugar and jaggery.Diseases, waterlogging hit sugar output by 10%, says governmentState Sugarcane Growers’ Association president Kuraburu Shanthakumar attributed the sharp rise to a combination of factors, including declining sugarcane production, deficient rainfall, crop diseases, exports, and alleged hoarding by sugar factories and wholesale dealers.“There are many reasons for the sudden increase. Production has come down in Karnataka as well as Maharashtra and Uttar Pradesh, the top three sugar-producing states in the country, while demand is rising ahead of the festivals. Deficient rainfall and diseases have affected the crop, and hoarding by factories and wholesalers is adding to the pressure,” Shanthakumar noted.Karnataka is particularly vulnerable to the production squeeze. According to Shanthakumar, the state’s 82 sugar factories produced around 5.8 crore tonnes of sugarcane last year, while production this year could be about 25% lower because of rainfall deficiency and crop diseases.The impact is particularly visible in parts of North Karnataka. Vijayapura and Kalaburagi have reported lower sugarcane yield this year.As an instance, farmers who harvested 100 tonnes of cane last year are managing only about 60 tonnes this year in some areas because of inadequate rainfall, as the weight of sugarcane has come down, he said.Belagavi and Bagalkot, the state’s major sugar-producing districts, are also closely watching the situation. Lower cane availability could put further pressure on sugar and jaggery supplies as the festival season gathers pace.No relief to farmersIronically, farmers say the higher consumer price is not translating into better returns for them. With sugarcane growers unhappy with the prices they receive, the area under cane cultivation has also reportedly declined in parts of the state.A technical officer at one of the sugar factories in Bagalkot district said the sugarcane production will be measured only after the beginning of the crushing season. If September gets good rains, there is a possibility of a good harvest, he added.

Source: Deccan Herald