Retail price of sugar surged to between Rs 55 and Rs 60 per kg because of the shortage of the commodity on the wholesale market against the soaring demand, traders said. In many parts of the city, sugar has become unavailable on the retail side because the hoarders, ahead of new cane crushing season, have again started to hold up supply in Ramazan to increase profits, they added.
Sugar price surged to Rs 49 per kg on the wholesale market, which led its price increase in the range of Rs 55 to Rs 60 per kg. The shortfall is seen as artificial and a deliberate move by the hoarders who had begun to pile up thousands of sugar sacks during past five months, they said. Many traders blamed the government for not taking brisk and concentrated action against the hoarders and said that officials were also behind the crisis.
The government has fixed Rs 45.50 per kg on the wholesale market and Rs 47 per kg on the retail market as official rates and asked the sellers not to exceed the prices. There has also been a clampdown drive of the government officials against those traders both on wholesale and retail market were selling the commodity on increased rates, which however the market players termed an eyewash.
The available sugar is of substandard quality, almost powder rather than granular. Traders said that the delivery orders to mills for sugar in advance have begun at Rs 42 per kg for which the government is also being pressurised. "Those who had bought thousands of sugar sacks at Rs 30-32 per kg have earned millions of rupees since the crisis started in the country. The shortage of sugar is artificial," traders added.