- Retailers and quick-commerce platforms are rationing sugar purchases due to tight supplies ahead of festivals
- Sugar retail prices have surged nearly 40% in the last two months across India
- Limitations range from three 1-kg packs to one 5-kg pack per transaction on online platforms
Retailers and quick-commerce platforms are rationing sugar purchases as supplies tighten ahead of the festive season, while retail prices have climbed nearly 40% over the past two months, The Economic Times reported Wednesday.
D-Mart, BigBasket, Blinkit and Swiggy Instamart are among the retailers and online platforms limiting the quantity consumers can purchase.
The impact is visible on online grocery platforms, with Swiggy Instamart and Blinkit limiting purchases of select sugar products and displaying a message that reads, “Sorry, we have limited quantities available.”
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Depending on the location and brand, restrictions range from three 1-kg packs to a single 5-kg pack per transaction.
The move comes as packaged-food manufacturers grapple with rising input costs, particularly sugar and edible oil.
Several companies are preparing to raise prices by 5%-6% to protect margins, with further increases possible if sugar prices remain elevated, according to the ET report.
The latest supply squeeze has been linked to lower-than-expected sugar production, exports of around 800,000 tonnes and alleged stockpiling by some intermediaries.
Incorrect production estimates by industry bodies have also reportedly contributed to the mismatch between supply and demand.
The government last week permitted imports of 1 million tonnes of sugar in an effort to improve domestic availability and contain prices.
India had earlier authorised exports of 2 million tonnes during the current season, but subsequently halted overseas shipments in May after domestic prices began rising.
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Mill-level sugar prices, which stood at around Rs 41 per kg in early June, climbed to nearly Rs 65 before easing to about Rs 58 following government measures, ET reported.
With Raksha Bandhan and other major festivals approaching, demand for sugar and packaged foods is expected to strengthen further.
Manufacturers are therefore preparing to pass a portion of higher input costs on to consumers, potentially making sweets, snacks and other packaged food products more expensive during the festive period.
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