Traders in Mumbai say the shortage of sugar will lead to a further rise in its price.
At present, sugar prices are hovering around Rs36 a kg. A fortnight ago, the price was Rs30 a kg.
“Inventories are very low and the new crushing season has not begun,” a trader said. “Millers are not supplying sugar in adequate quantities and, therefore, the prices may touch Rs40 a kg before cooling off.”
Another trader said the mills are expected to start the new crushing season in two weeks, and this is likely to ease the supply constraint. A sugar mill in Uttar Pradesh is believed to have sought police protection for a consignment of sugar, which will arrive from Brazil on Thursday.
While nobody from the mill, Uttam Sugar, could be reached for confirmation, the report highlights the tension between mills and farmers, who are against imports and want higher price for their produce amid global shortage of sugar.
Uttar Pradesh cabinet secretary Shashank Shekhar Singh said on Wednesday that the state government has ordered a complete ban on the import of raw sugar. The state administration has also advised mills to stop the movement of raw sugar already imported till the situation cools down. On Sunday, farmers had stopped consignments of sugar - mainly imported from Brazil.
The farmers want Rs280 a quintal of sugarcane against the state advised price (SAP) of Rs165. The Centre has fixed a fair and remunerative price (FRP) at Rs129.84 a quintal. Also, states will have to bear the additional costs if they raise the SAP higher than the FRP, according to an ordinance issued by the Centre.
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