MP sugar traders in a fix

After a sudden crash in prices, wholesale traders of sugar in Madhya Pradesh are caught between two sticky realities — price of sugar and government control on trading.

Sugar prices have crashed by Rs 200-300 per quintal, reportedly due to low demand in neighboring states. The prices of Kolhapur sugar, which Madhya Pradesh imports from Maharashtra, has crashed by Rs 200 per kg. “I have booked S-30 and M-30 variety at Rs 2690 per quintal and Rs 2738 respectively from Maharashtra,” said Sunil Agrawal a wholesale trader.

The Madhya Pradesh Sugar Vyapari Mahasangh however has said, the crash in prices is temporary and will go up further before new sugar arrives in the market. “Prices have crashed due to unseasonal rains and low festive demand but prices may go up again after November,” said Anupam Agrawal, an office bearer of the Sangh.

Traders and agents have also said that millers in Maharashtra have been asked to clear stocks within fifteen days. “Those who are anticipating further price hike, have also started releasing the stocks,” said another trader in Bhopal, adding, “the prices will crash further.”