Chennai, Aug 24:
Sugar prices have risen sharply in Tamil Nadu, touching ₹72 a kg, amid growing demand ahead of a series of festivals and concerns over supply.
Sugar, which was sold at around ₹45 a kg last month, rose to ₹67 on August 20 before climbing further to ₹72. Traders attributed the increase partly to higher demand ahead of Onam, Vinayaka Chaturthi, Ayudha Puja and Deepavali.
Another factor cited by traders is the increased demand for sugarcane for ethanol production used in E20 petrol. However, the Centre has maintained that there is no direct link between E20 petrol and the rise in sugar prices.
Reports of sugar stockpiling by mill owners in Maharashtra have also added to supply concerns. Consumers have urged the Centre and the State government to take steps to contain the steep increase, particularly ahead of the festive season.