Sugar nears Rs 50 a kilo, govt helpless

NEW DELHI: Packaged sugar now costs Rs 46 a kilogram in the retail market and there are no signs of prices levelling off. With loose sugar also costing Rs 43-44 a kg, the poly-packed product is inexorably moving towards the Rs 50 a kg mark, with the government appearing helpless.

The steady rise in sugar prices since the second half of last year is a consequence of shortfall in production aggravated by the Christmas-New Year season. The current stocks are just about adequate to cover a month-to-month requirement , primarily for PDS users. There are no extra stocks that can be released to stabilize prices.

Official sources said the government was so far disinclined to import sugar even though private parties were free to do so. When the government decided not to import rice, which is a staple, there was no case for sugar, said sources, indicating that consumers may have to live with high prices. The high prices in the international market are a deterrent as apart from crop failure in India, sugarcane has failed in Brazil too.