Amid the record high sugar prices in the domestic market, the government is likely to impose stock limits, along with other measures, to address the surge, according to traders and industry stakeholders. However, they argue that stock limits are only a temporary fix and may offer short-term relief while potentially disrupting the supply chain. The sector needs long-term solutions, they say.
According to industry data, ex-mill sugar prices in Uttar Pradesh increased to Rs 4,400-4,500 per quintal, up about Rs 300 in a month. In Delhi, wholesale prices have risen to Rs 4,750-4,800 per quintal. Traders expect ex-mill prices to hit Rs 5,000-5,100 per quintal by October, when the new season starts. A weak monsoon, hurting cane output, could tighten supplies further and push prices up more, they say.
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