India sugar prices climb 10% as festival stockpiling rises
Business
Sugar just got a lot pricier in India, up 10% this past month, now reaching ₹4,716 per 100kg in Kolhapur.
The jump is mainly because there's less sugar around and bulk consumers such as biscuit and confectionery makers and soft drink and beverage companies are building inventories ahead of the festival season.
With inflation already above RBI's target, this isn't exactly sweet news for shoppers.
Indian government bans sugar exports
To keep things under control, the government has banned sugar exports and set stock limits.
Still, bulk buyers like candy and drink makers are grabbing what they can for Diwali and other festivals.
Mills are holding back supplies, hoping prices rise even more, so don't expect relief until new crops arrive in November.