Despite lower arrivals, jaggery prices head south

Jaggery arrivals to Anakapalli here have been reducing significantly over the last three years. This year, due to bad weather conditions sugarcane productivity per acre reduced about 30 per cent in this region; the main reason for the drop in jaggery arrivals, according to KLN Rao, president, Anakapalli Jaggery Merchants Association.

In the 2011-12 season, Anakapalli received 2.9 million lumps (each lump contains 15kg) up to February. As compared with this, in the 2012-13 season, this was down to 2.5 million till February and in the current season (2013-14) this has further declined to 1.9 million lumps.

Sugarcane farmers produce 75 lumps of jaggery on average on an acre. This time, the productivity has dropped to 45-50 lumps as there had been a decline in cane production, he added.

"However, as the sugarcane crushing season is coming to an end, mills expect jaggery arrivals to gradually increase by May. At present, 35,000-40,000 lumps arrive in the market daily," he said. Anakapalli received 789,000 lumps in February as against 857,000 during the same period last year.

However, despite lower arrivals, rates too are heading south. Last August, black jaggery quoted at Rs 270-280 per 10 kg, and now it has declined to Rs 220-225. From the last few months, state excise department officials are not allowing movement of black jaggery in the Telangana area, and this has resulted in the fall in prices, said K Buchi Raju, a trader.

Black jaggery is used in making country liquor and as the government is seizing it, traders have become cautious.