Sugar prices rise as demand rises due to high temperatures and elections

Mumbai: As a result of high temperature and Lok Sabha elections, the demand for sugar in the country has increased by five percent in the current year. Amidst the temperature, the demand for cold drinks and ice cream has increased during election rallies, and the consumption of sugar has also increased.

Keeping in mind the rising temperatures as well as the Lok Sabha elections, there is likely to be a record increase in sugar consumption in the country in the current year. The temperature in many parts of the country is above 40 degrees.

Sugar consumption is estimated to increase to 75 lakh tonnes in the April-June period of the current year. The figure is five per cent higher than last year's April-June period, a local trader said. If we talk about the entire current year, the consumption of sugar is estimated to be a record 2.90 crore tonnes.

In view of the festivals, the government had increased the sugar quota for April. The sugar quota for mills was declared at 25 lakh tonnes in April, while in March it was 23.50 lakh tonnes.

The decision to release more sugar was taken in view of the festivals of Gudi Padwa, Chaitri Navratri and Ram Navami, however market circles say that the price of sugar is increasing in the current month.

Market sources are saying that since there is regulation on export of sugar, more quota has been released to ensure that there is no stockpiling of goods in domestic mills. During summer the demand for sugar increases from cold drink and ice cream manufacturers.