Black jaggery prices have declined over 25 per cent at the Anakapalli market here with police imposing restrictions on its sale following the recent illicit liquor deaths in East Godavari district.
Anakapalli, the second largest jaggery market in the country, received about 2.8 million lumps (each lump is of 15 kg) of jaggery during the 2008-09 season, of which about 60 per cent was black jaggery, mainly used in making illicit liquor. In the current season, arrivals are likely to increase by a couple of lakhs.
“Two weeks ago traders purchased black jaggery from farmers at Rs 300-310 per 10 kg, but after police restrictions prices have gradually dropped to Rs 220-230 per 10 kg,” KLN Rao, President, Anakapalli Jaggery Traders Association, told Business Standard.
Of the total black jaggery that arrives at Anakapalli, about 40 per cent is marketed in the state while the remaining is sold to states like Orissa, Bihar and West Bengal.
“In this situation if we purchase more black jaggery from farmers we will lose further. Therefore, even though the prices have fallen, traders have not procured any stock for the last one week,” Rao said.
Traders are expecting huge losses on the existing stocks because of the fall in prices. “Traders had stocked about 1,600 lorry loads (each load contains 10 tonnes) of jaggery during the last three-four months by spending Rs 280-290 per 10 kg on an average. Now that the prices have declined to Rs 210-220, they expect huge losses this season,” K Buchi Raju, a trader, said.
