Jaggery prices up 50% on short supply

Jaggery prices in Andhra Pradesh have increased by over 50 per cent in October compared with the same period last year. Short supply and growing demand from states such as Orissa and Bihar have led to the rise.

“Last October, we purchased black jaggery from farmers at Rs 170-190 per 10 kg, whereas this year we are paying Rs 275-295,” said K L N Rao, president of Anakapalli Jaggery Merchants Association. Anakapalli is the second largest jaggery market in the country.

Jaggery traders, however, expect a 10-20 per cent drop in prices from November, when the market is likely to witness an increase in arrivals. Currently, about 3,000 lumps of jaggery (each lump weighs 15 kg) arrive here daily. The number is likely to go up to 5,000 lumps by the end of this month and to 10,000 lumps during November.

“On one hand jaggery arrivals would increase significantly in November, on the other, demand would decline with the end of the festive season. All this would bring down prices,” he added.

Anakapalli traders are also earning huge margins by selling their old stock this season. “We had purchased jaggery at Rs 19,000-20,000 a tonne and are now selling it at Rs 26,000-29,000 a tonne. After paying our interest and cold storage charges, we still make a profit of Rs 4,000 on each tonne,” said K Buchi Raju, a trader.

Traders are now left with just 40-50 loads. Most of the stock was sold to traders in Orissa, Bihar, West Bengal and parts of Andhra Pradesh.