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Tezzbuzz Desk: Before the festive season, pressure on sugar supply in the country has started increasing. Amidst the shortage in production and rising prices, retail and quick-commerce platforms like D-Mart, BigBasket, Blinkit and Swiggy Instamart have imposed limits on the purchase of sugar for customers. At many places, customers are able to buy only 3 to 5 kg of sugar at a time.

Sugar prices have increased by about 40 percent in the last two months. In many parts of the country its retail prices have crossed Rs 70 per kg. In such a situation, companies have fixed the quantity of purchase to deliver the limited stock to as many customers as possible. According to the information, a maximum limit of 5 kg per transaction has been imposed for some brands of sugar on Blinkit in Delhi-NCR. Whereas in Pune, customers are able to buy only three packets of 1 kg each. BigBasket has also set a maximum purchase limit of five packets of 1 kg for some brands.

Purchase of up to two packets of 1 kg each has been allowed for some brands of sugar in Delhi-NCR on Swiggy Instamart. At the same time, in Pune's D-Mart store, customers have been informed to buy maximum 5 kg of sugar on one bill. The main reason for this rationing is said to be the lack of domestic availability of sugar. Supply in the market has been affected due to lower production than initial estimates, large exports and alleged hoarding at some places. The industry's inaccurate production estimates have also made the situation more difficult.

Rising prices are not only affecting the common consumers but also the companies making packaged food. The increase in the cost of edible oil along with sugar has increased the pressure on the profits of companies. In such a situation, many companies are preparing to increase the prices of their products by about 5 to 6 percent. To control prices, the government had approved the import of 10 lakh tonnes of sugar last week. The government is trying to control rising prices by increasing supply in the domestic market.

Earlier, India had allowed export of 20 lakh tonnes of sugar in anticipation of additional stocks. However, the government banned exports in May after domestic prices rose. The price of sugar at the mill level had increased from around Rs 41 per kg to Rs 65 in the early days of June. After government steps, now the price has come down to around Rs 58 per kg.

At present, the demand for sugar is likely to increase before festivals. In such a situation, the purpose of the purchase limit imposed by retail companies is to prevent hoarding and to deliver the limited stock to as many customers as possible. However, if the supply does not improve soon, its impact may be seen on the prices of packaged food and everyday items in the coming days.