Aurangabad, Aug 28:
The sugar crisis in Brazil and increased demand for sugar in international market has increased the price of sugar in local market. The price of sugar has increased by Rs 3 and is now being sold at Rs 40 per kg in retail markets. The price hike comes ahead of the beginning of the festive season.
Traders said that for the first time in the international market, Indian traders have signed a sugar export agreement five months before their shipment. In Brazil, the heat wave and now the cold wave has caused widespread damage to the sugarcane crop. And the world's attention has shifted to India, which the second largest sugar producer. Contracts for 5 lakh tonnes of raw sugar have been signed for shipments in December and January. Indian traders used to sign these export agreements a month before December. This is benefiting the sugar factories here. It is estimated that 7 million metric tonnes of sugar will be exported by September. The central government has set a sales quota of 21 lakh metric tonnes for the country in August. Now, a sugar quota of 22 lakh metric tonnes has been announced for the month of September. Traders said the lower than expected quota of 2 lakh metric tonnes has resulted in rise in sugar prices. Sugar, which was selling at Rs 37 per kg in retail two weeks ago, is now priced at Rs 40 per kg, with an increase of Rs 1 per kg next month.