Sugar Price Hike: Sugar turned bitter in the festive season, price reached the highest level of 6 years
[ad_1]
Sugar Price Hike: The festive season has started in India. In such a situation, now the pocket of the common people who buy sweets can be robbed. This is because the prices of sugar have been on fire. The price of sugar in India has reached the highest level in the last six years. At the same time, due to less rains in the monsoon this year, there has been a big impact on sugarcane cultivation. Its effect is also being seen in the market. According to media reports, Ashok Jain, President of the Bombay Sugar Merchants Association, said that sugar mills in India are already in trouble due to the low yield of sugarcane. The crop has been affected by less rain. Due to this the production of sugar has come down considerably. In such a situation, the sugar mill is not ready to sell sugar at a lower price.
Karnataka and Maharashtra also affected
Ashok Jain told that this year the production of sugar may decrease by 3.3 percent. In the new season starting from October, this time production is estimated to be 31.7 million tonnes. Karnataka and Maharashtra are the largest sugarcane producing states in the country. Half of the total output is produced here. These states are also affected. In view of the rise in the price of sugar, the central government can also ban its export to increase the availability of sugar in the domestic market like rice, onion and tomato. If the central government bans the export of sugar, then this will be the first time in the last seven years that the export of sugar will be banned. The government has two things related to this. One of these is to meet the requirements of sugar in the domestic market. Whereas, the production of ethanol from the second surplus sugar is also to be done. If the government bans exports due to the decline in sugar production, then there can be a sharp jump in food inflation worldwide.
Which sectors will be affected
The impact of sugarcane crop being affected and the availability of sugar in the market has started showing on the prices. On July 1, 2023, the average price of sugar was Rs 42.98 per kg, which has increased to an average of Rs 43.42 per kg on September 5. On January 1, 2023, it used to be Rs 41.45 per kg. If the rise in the prices of sugar continues, everything from biscuits to chocolates, cold drinks, sweets will become costlier. The most affected by the prices is likely to be the food industry.
RBI committed to bring down inflation to 4%: Governor
reserve Bank of India (RBI) Governor Shaktikanta Das said the central bank is committed to bringing down inflation to 4 per cent. He said that the RBI will keep an eye on the risks, as the management of prices can at times be affected by global supply shocks. Shaktikanta Das, in a lecture at the Delhi School of Economics, said that the central bank is careful to ensure that there is a cascading effect of one event on inflation and so on.second order effect) could not fall. The government has entrusted the central bank with the responsibility of keeping inflation at 4 per cent, with an upward and downward variation of up to 2 per cent.
Inflation rises due to food price shock
The RBI governor said that frequent occurrences of food price shocks pose a risk to the stabilization of inflation. This is going on from February 2022. We will keep an eye on this aspect as well. He said that consistent and timely supply-side interventions by the government are critical in limiting the severity and duration of food inflation. He said that in these circumstances, one has to be vigilant about any risk to price stability and it is necessary to take appropriate steps on time. Shaktikanta Das said without giving any deadline that we are focusing strongly to bring inflation to the target of four percent. He also said that inflation had reached 7.4 per cent in July due to vegetable prices, but now it has started coming down.
[ad_2]
Source link
