After a long rally witnessed in sugar, rising prices of gur have now turned bitter for consumers on the eve of general election in the country.
Gur spot prices at the major terminal markets including Muzaffarnagar and Hapur mandis have increased sharply by nearly 25% during the current month.
It can be noted that local prices of sugar also increased to Rs 2,600 per quintal this week from Rs 2,200 a quintal, despite release of higher free sale quota for the month.
Spot prices of gur in Muzaffarnagar have increased by nearly Rs 200 to trade at Rs 1,050 per 40 kg on Thursday on reports of reduced stocks in Uttar Pradesh and expected lower output of gur in the country.
Spot price of Gur Balti in Hapur market also increased to Rs 1,030 per 40 kg on increased offtake. NCDEX gur July futures also jumped up by nearly Rs 175, or 18%, to trade at Rs 1,134 per 40 kg on Wednesday over the beginning of the month.
?Prices have touched record levels during the month mainly on reports of cane shortage, reduced stocks and expected lower output this season. Total output is expected to be lowered by 30-40% in Uttar Pradesh and Maharashtra,? Pankaj Agrawal, a leading trader of Muzaffarnagar said.
Overall output of gur in the country is estimated lower around 8.5 to 9 million tonne for the current season from 14-15 million tonne last season. Total stock is expected to be around 10 lakh bags (each 40 kg) in Uttar Pradesh.
?There is good demand for black gur from Gujarat as it is used for making country liquor. Normally, demand for country liquor increases during the general election time. Some traders in Gujarat are holding large stocks of yellow and black gur ahead of election as there is no stock limit in gur,? a local trader said.
?Prices may remain higher in the next few days on short supply. Total output in south India is believed to be good but inflows of new gur from south are expected to begin in early June,? he said.