Retail sugar prices in India rise about 40%
Sugar has gotten a lot more expensive lately, retail prices witnessed about 40% increase, in some States up to 50%, in the past year, with Odisha recording the highest price at ₹67.4 per kg (up from ₹46.89 last August).
The national average isn't far behind, rising from ₹46.3 to ₹62.47 per kg, making sweets and snacks pricier for everyone.
Indian government limits stocks, plans imports
Wholesale prices have climbed too, thanks to lower production, crop damage from bad weather, global supply issues, festive demand, and some speculation by traders.
While the opposition blames the government's ethanol program for diverting sugarcane away from sugar production, officials say that diversion actually dropped from 12% to 9%.
Farmers' unions also accuse big traders of hoarding sugar to push prices up.
To tackle this, the government is limiting how much dealers can stock until November 30 and restricting bulk buying starting September 1. Plus, they plan to import extra sugar by the end of October to help cool things down.