Jaggery traders in distress sale

Despite a drop in arrivals in the 2005-06 season, traders at Anakapalli, the second largest jaggery market in the country, are facing a tough time to clear their old stocks.

New jaggery started coming to the market from the middle of August and the traders have 500-550 loads (each load weighs 10 tonne) of the commodity worth more than Rs 5.5-6 crore stock with them.

During the 2005-06 jaggery season (August 1 to July 31), the Anakapalli market received about 38 lakh lumps (each lump weighs 15 kg), which was about 14 lakh lumps less compared with the 2004-05 season.

The shortage prompted the traders to stockpile about 2,200-2,500 loads by paying higher prices to farmers.

"Normally, we sell the entire stock before August every year at some profits. But this year, with no takers from Orissa, Kolkata and Bihar, the traders were compelled to sell their stocks at low prices," K Lakshminarayana Rao, president, Anakapalli Jaggery Traders Association, told Business Standard.

In their bid to clear old stocks, the traders are now resorting to panic sale, losing Rs 5,000-15,000 on each load. Still, they are saddled with 500-550 loads of jaggery stocks, according to Rao.

Traders from Vizianagaram and Srikakulam faced similar predicament and sold away their stock at less profit margins in Orissa and Kolkata markets.

At present, about 3,000 lumps of jaggery come to the Anakapalli market daily. The traders are paying about Rs 100 to Rs 120 per 10 kg of jaggery depending on the quality. A glut appears to be possible this time round as there is a high yield of sugarcane crop.