Sugarcane shortage, lower supplies and rising demand have pushed Mahalingapur jaggery prices sharply higher
Jaggery prices have risen to around Rs 80 per kg in North Karnataka as Mahalingapur APMC records a sharp increase amid sugarcane shortage, declining supplies and growing demand.
Hubballi: Jaggery prices have climbed to around Rs 80 per kg in the retail market after sugar prices rose to Rs 75 per kg, adding to consumer costs ahead of the festive season in Karnataka.
The price increase has been particularly sharp in Mahalingapur APMC, a major jaggery market for North Karnataka. According to APMC sources, the wholesale price of jaggery increased by Rs 2,700 per quintal within four days, rising from Rs 4,500 to Rs 7,200 per quintal.
Sources said such price fluctuations are generally seen around the festive season. However, traders and market sources noted that the current increase is unusually steep compared with previous trends in the market.
The retail price of jaggery has reportedly doubled within a month. On Tuesday, Mahalingapur jaggery was being sold at around Rs 65 per kg, while the price has now moved closer to the Rs 80 mark.
Sugarcane Shortage Affects Jaggery Supply
The rise in sugar prices has been linked to a shortage of sugarcane, which has also affected jaggery production and availability. North Karnataka depends largely on jaggery supplied from Mahalingapur, which is regarded as a premium jaggery-producing market. Mandya is another major source of jaggery for the region.
Traders said the supply of jaggery has declined while demand has increased, putting additional pressure on prices.
The decline is also visible in inter-state movement from the Mahalingapur market. Previously, an average of 15 to 20 loads of jaggery were reportedly sent to other states each day. The number has now fallen to only a couple of loads, according to market sources.
Traders attributed the reduction in movement to declining availability and production, with lower supplies contributing to the increase in prices.
Ethanol Production Raises Commodity Concerns
Traders have also raised concerns over the growing focus on ethanol production and its possible impact on the availability of essential commodities.
The increase in the ethanol blending target from 5% to 20% has encouraged more factories to enter ethanol production. Traders said the greater allocation of agricultural resources towards ethanol could affect the availability of sugar and jaggery.
They also expressed concern that increased use of food grains for ethanol production could place additional pressure on rice prices.
According to The Times of India, traders said the priority being given to ethanol production is affecting the availability of essential commodities and contributing to an imbalance in the market.
With jaggery prices rising sharply before the festive season, consumers are facing higher costs for another commonly used sweetener following the increase in sugar prices.
