Sugar prices: Neither sweet nor low

Sugar prices have nearly doubled in India as the country faces a massive shortage of sugar stocks. Such is the scenario that in states like Kerala, where the festival season has begun, families are being forced to do without traditional sweets.

The shortage of sugar has been a cause of concern for local consumers like Shyamala, who has to stand in a long queue at a ration shop to get sugar at a subsidised rate of Rs 24 per kg. This is half the price in the open market.

Further to her dismay, the offer is limited to just two kilos of sugar per ration card till stocks last.

In metros in Kerala, there are only five stalls meant to help consumers during the festival season for Onam. And problems for consumers doesn't seem to end here as supplies are running out fast.

In Delhi, Agriculture Minister Sharad Pawar met with sugar manufactures to search for a solution to this crisis.

At present, sugar mills in India are required to give 10 per cent of their output to the government, but the government wants to double this, and sell the additional sugar through the public distribution system.

Mill owners are resisting this, because they can sell their sugar at twice the price that the government offers them.
India consumes about 24 million tonnes of sugar every year, but this year the production has been only 15 million tones.

So, the government has allowed the import of raw sugar.

The shortage of sugar supply has also become a political issue, with the opposition accusing the government of not doing enough to control prices.