New Delhi: Retail sugar prices have risen by Rs 5 per kg in the past one month and are currently ruling at Rs 39-40 per kg in the national capital amid concerns over lower output this year due to poor monsoon rains.
Prices are expected to rise further to Rs 44-45 per kg level as the wholesale prices of the sweetener have breached Rs 40 per kg, the highest for this calender year.
The wholesale prices of sugar in Delhi yesterday touched their highest mark so far in 2012 as they rose by Rs 100 to Rs 4,000 per quintal on brisk buying by stockists.
Market experts attributed the rally in prices on reduced offering by millers and hoarding by traders due to constant rise in rates last month. They said rising seasonal demand among bulk consumers such as ice-cream and soft drink makers further influenced the trading activity.
Ex-factory prices of sugar were ruling in the range of Rs 36.20-38 per kg in Delhi.
Sugar was being sold at Rs 34-35 per kg in Delhi a month ago and the prices have now shot up to Rs 39 per kg at the government-run Kendriya Bhandar.
Prices of packaged sugar in the retail market are in the range of Rs 45-48 per kg.
In a bid to check rising prices, the government has decided to release additional 2.66 lakh tonne sugar in the open market.
It has also amended the sale conditions relating to release of quarterly non-levy quota for June-September quarter under which a quantity of 45 lakh tonnes was released.
Under this system, sugar mills have been directed to sell at least 30 percent of the non-levy sale quota in July and at least 70 percent of the quota in July and August. The remaining 30 percent to be sold off during September.
First Published: Tuesday, August 07, 2012, 16:33