Demand-supply gap sends Anakapalli jaggery prices soaring

Increasing demand and decreasing arrivals have led to a steep rise in the prices of jaggery at the Anakapalli jaggery market, the second biggest jaggery market in the country.

"Jaggery prices have been increasing by 10-15 per cent for the last 20 days. In November, black jaggery was priced at Rs 101 (10 kg), red jaggery Rs 105, yellow jaggery Rs 110 and deluxe grade was priced at Rs 120. Now, their prices have increased to Rs 110, Rs 120, Rs 130 and Rs 140 respectively," IVR Nageswara Rao, president, Anakapalli Jaggery Merchants Association, told Business Standard.

During the last jaggery season, between August and December 15, 2004, the market received about 12 lakh lumps (each lump weighing 15 kg) of jaggery, whereas this season during the same period, jaggery arrivals slipped to 7-7.5 lakh lumps. The decline is mainly attributed to a drop in sugarcane production.

"Heavy rains during September and October inundated the sugarcane fields for several days. As a result, sugarcane production declined by more than 20 per cent in this region," K Buchi Raju, a senior jaggery trader, said.

On the other hand, there has been a spurt in orders from traders from Maharashtra, Madhya Pradesh, Kolkata, Bihar and Orissa.

According to Raju, sugar mills in these states, particularly Maharashtra, are offering good support price, between Rs 1,100 and Rs 1,250 per tonne of sugarcane.

Owing to this, jaggery production in Maharashtra has fallen significantly, which is why jaggery traders from other states have turned to Anakapalli.

Rao felt that this shortfall in production would enable jaggery farmers to get good price throughout the season this year too. During last jaggery season, arrivals in Anakapalli market were about 52 lakh lumps while this season it would not cross 42-53 lakh lumps, he added.