Taking into account the high sugar demand for the upcoming Onam, Raksha Bandhan and Krishna Janamashtami festivals, an additional quota of 2 LMT (in addition to the 23.5 LMT already allocated for the month of August 2023) will be allocated for the month of August. , 2023. Additional sugar in the domestic market will ensure reasonable prices across the country.
Despite the 25% increase in international sugar prices over the past year, the average retail price of sugar in the country is around ₹43.30 per kg and is likely to remain only within a narrow range. Over the past 10 years, annual sugar price inflation in the country has been below 2%.
During the current sugar season (October-September) 2022-23, India is estimated to have a production of 330 LMT of sugar after diverting around 43 LMT for ethanol production. Domestic consumption should be around 275 LMT.
As it stands, India has sufficient sugar stocks to meet domestic demand for the remaining months of the current SS 2022-23, and optimal final stocks of 60 LMT will be available at the end of this season (enough to meet the consumption of sugar for 2 and a half months). ie 30.09.2023.
The recent surge in sugar prices will soon subside as each year between July and September, just before the next season, prices rise and then fall as cane crushing begins. Therefore, the sugar price increase is very nominal and short-lived.
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