Mumbai: Sugar demand is likely to rise to record levels as the consumption of cold drinks is increasing amid summer and election campaigns. Sugar prices are likely to go up.
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Prakash Naiknavare, managing director of the National Federation of Cooperative Sugar Factories Ltd, said the demand for sugar could touch a record 29 million tonnes this year. The total demand for sugar stood at 27.8 million tonnes in the marketing year 2022-23, which ended on September 30. A Mumbai-based businessman said the demand for sugar could go up by 5 percent to 7.5 million tonnes between April and June this year.
Rallies boost demandAvantika Saraogi, executive director of Balrampur Sugar Factory, said the sales of ice cream and soft drinks have increased as political rallies and campaign rallies are crowded. This has increased the demand for sugar.
Price increase by 3%Ashok Jain, president of the Bombay Sugar Merchants Association, said the government has distributed an additional quota of sugar for April this year as compared to last year. Still, sugar prices could rise as much as 3 percent due to strong demand from wholesalers.