Retail prices for sugar and jaggery in Chennai have increased by Rs 10 to 15 per kilogram over the past two weeks, raising concerns ahead of the festival season. Sugar now retails at Rs 65 per kilogram, while jaggery has climbed to Rs 90 per kilogram. Traders warn that prices could reach Rs 100 per kilogram by year-end if current market trends persist.
Experts attribute the price hike to multiple factors, including crop damage from excess rainfall last year, poor monsoon conditions affecting current production, global supply dips, and market hoarding. The opposition has also linked the rising costs to the Union government’s ethanol policies, while traders report price increases across other essential commodities like brown sugar, almonds, and rice.
The rising costs have significantly impacted sweet shops and catering businesses, forcing them to increase prices for finished goods. Business owners, such as caterer Uma Krishnaswamy, noted that they face the difficult choice of absorbing higher ingredient costs or risking the loss of clients by passing those expenses on to customers.
