The Hindu Business Line : Limited stocks drive jaggery prices up

JAGGERY (Gur) prices, particularly at the Sangli wholesale market, a major jaggery trading centre in Maharashtra, have shot up by Rs 250-Rs 300 per quintal in the past fortnight due to reduced stocks coupled with sustained demand from upcountry centres.

Wholesale prices at Sangli are ruling at Rs 1,800-Rs 1,850 per quintal for average quality and Rs 2,400-Rs 2,450 per quintal for good quality, a local trader said.

As a result, jaggery prices at Vashi APMC market have also gone up by over Rs 100 per quintal during the same period. Current prices are ruling at Rs 2,100 per quintal for average quality and Rs 2,600-Rs 2,700 per quintal for good quality because of limited stock and reduced inflows from terminal markets such as Sangli and Nira centre. Prices at retail outlets in Mumbai are ruling at over Rs 30 per kg.

"At present, Sangli is the only centre of supply in the State. Stocks at Sangli are very low due to continuous rains in western Maharashtra. Ready stocks at other centres such as Karad and Kolhapur are practically nil," Mr Dipak Shah, President of the Mumbai Jaggery Merchants' Association (BJMS), told Business Line.

"Prices may go up further because forthcoming festival demand, i.e. Ganesh Chaturthi and Dussera, will start from next week. On the other hand, there is also a fear of consumer resistance at higher level. Demand may be diverted to sugar as an alternate medium," another local trader said.

"In Mumbai, there are hardly any stocks with stockists and traders. The situation is hand-to-mouth here. New arrivals will start from October-end in the Karad and Kolhapur centres," Mr Shah said.

Daily inflows at Vashi market are around five to seven trucks from Sangli centre against the daily requirement of 10 to 15 trucks. However, inflows at Sangli market are reduced around 50 trucks daily against average inflows of 150 to 200 trucks.