Sugar trouble hits Tamil Nadu ahead of festival season

CHENNAI: The prices of sugar and jaggery, both used in sweets and festival-time dishes in the State, have gone up by Rs 10-15 per kg in the retail markets in Chennai in just a fortnight, and according to distributors and traders, they may rise further to even touch Rs 100 by the end of the year if the factors pushing up the prices remain unchecked.

The surge in sugar price has turned into a political issue, with the opposition blaming the Union government’s relentless ethanol push for it. However, experts say there are various reasons for the spike, including excess rainfall that damaged sugarcane crop last year leading to lesser cultivation this season and this year’s poor monsoon that reduced production, dip in production worldwide, and hoarding.

According to shop owners, sugar price has gone up to Rs 65 from Rs 55 per kg, while jaggery is being sold at Rs 90 per kg from Rs 75 only two weeks ago.

The rise – and the threat of further spike in the coming days – has put pressure on households and businesses alike.

Speaking to DT Next, Punniyappan, a trader at the Koyambedu Wholesale Food and Grain Market, said ‘naattu sakkarai’ (brown sugar) has also become costlier, now selling at Rs 73 per kg from Rs 60, while the price of almonds have jumped to Rs 1,200 per kg from Rs 900, and various rice varieties have increased from Rs 70 to Rs 80 per kg.

This has come at a particularly difficult time for sweet shop owners, who were banking on the upcoming festival season for a good business.

Similarly, catering business owners are frustrated over the sudden increase, as rising ingredient costs have forced them to hike the prices of sweet items.

Uma Krishnaswamy, owner of Sri Sai Hasini Catering, said jangiri price increased to Rs 670 per kg from Rs 600/kg, gulab jamun to Rs 22 per piece from Rs 18, palkova to Rs 1,015/kg from Rs 960, and halwa to Rs 900/kg from Rs 750.

"We cannot charge higher rates to pre-booked customers. We cannot sustain the business if we don't increase prices; but if we do, we risk losing clients," she said.