Companies to boost refined sugar supply as government moves to cut prices

Sugar suddenly turned scarce in the market during the festival season, hitting festivals across India that follow close on each other's heels. Festivals such as Raksha Bandhan, Janmashtami and Ganeshotsav are celebrated with much fanfare in India and involve the tradition of distributing sweets. But with sugar prices shooting up, the common man's pocket has taken a direct hit. Not just sugar, but vegetables and several other essential items also saw price rises, with a big impact on household budgets.

The government has turned alert to bringing down prices in this situation. As part of this, a major plan has now been drawn up to cut sugar prices in the market. Refined sugar will be supplied to the market. The question is what this sugar actually is, and why companies are going to supply it on a large scale.

Around two and a half lakh tonnes of pure sugar is being prepared for supply to the domestic market. It is hoped that if additional stock becomes available in the market, sugar prices could come down, with the biggest benefit going to ordinary people. Many people may not know what refined sugar actually is.

Refined sugar is the glossy, white sugar prepared by purifying raw sugar or sugarcane juice. It is then put through various processes to make it fit for consumption. Refineries that make refined sugar are usually located near ports, where raw material is imported, processed, and then sent to the market for sale.

An important point is that sugar prices in the wholesale market have fallen compared to before. Until some time ago, sugar was available from factories at 67 to 70 rupees per kilogram. Now factory and wholesale prices have come down to around 45 to 55 rupees per kilogram. But this has not yet been reflected in the retail market. Retail sugar prices remain at 60 to 65 rupees per kilogram. Sugar prices could fall in the coming days.