In spite of fresh sugar entering the market since November 1, sugar prices, now hovering at Rs 37-40 per kg, are not expected to come down soon as supply continues to be limited.

The reason is that the Centre — which decides the quantity to be supplied to sugar mills—¿ has allotted about 5 lakh tonnes less for November, as stocks are low. From 15 lakh tonnes last November, allotment has dipped to 10.5 lakh tonnes this month against the requirement of close to 20 lakh tonnes.

The daily sugar consumption in Pune for November ranges from 500 to 15,000 tonnes. “Allotment has been lower this year. Although the government has allotted an additional quota of imported sugar, supply is unreliable and irregular causing prices to rise,” said Vijay Gujarathi, president of the Sugar Traders Association of Pune.

“The sugarcane crushing season in the state also started late,” said Prakash Naiknaware, president of the Maharashtra State Cooperative Sugar Federation. Only 43 mills in the state have started crushing cane, against 63 last year. “In Uttar Pradesh, crushing season has not yet begun. UP and Maharashtra together account for 78 per cent of the country’s sugar production. On October 31, when allotment was fixed, less sugar was available from mills,” he said.

The government had announced sugar at Rs 20 per kg for September and October that benefited 15.5 lakh families in Pune district and played a significant role in reining in prices. The scheme ended on October 31.

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