Sugar Price Surge Sparks Concern Among Food Makers, Hotels in Mysuru; MCCI Seeks Govt Intervention
The recent sharp rise in sugar prices has triggered concerns among food product manufacturers and the hotel industry in Mysuru, with the Mysuru Chamber of Commerce and Industry (MCCI) urging the central and state governments to intervene and provide sugar at subsidised rates.
In a statement issued here, MCCI president K.B. Lingaraju highlighted that the steep increase in sugar prices is severely affecting food product manufacturing as well as the hotel industry. He noted that the price rise impacts not just domestic consumers but also raises production costs for bakeries, sweet and biscuit manufacturers, beverage companies, food processing units, hotels, restaurants, and other small and medium scale enterprises.
These industries are already grappling with rising electricity charges, labour expenses, transportation costs, packaging expenses, and raw material prices. According to Mr. Lingaraju, the rapid escalation in sugar prices is forcing small and medium food product manufacturers to consider hiking the prices of their goods. He explained the dilemma: if prices are raised, the burden falls on consumers; if they are not raised, industries face losses.
The MCCI has called upon both the central and state governments to establish a mechanism for supplying sugar at concessional rates to food product manufacturing industries and the hotel sector. Mr. Lingaraju specifically urged that the sugar required by small and medium industries be provided at subsidised rates through a government-regulated system. He also demanded close monitoring of sugar stocks, production, and the quantity of sugarcane and sugar being diverted for ethanol production.
Seeking stringent action to prevent artificial shortages and illegal hoarding in the market, Mr. Lingaraju requested the governments to hold consultations with sugar factories and industry associations to stabilise sugar prices. He stressed that food product manufacturing and the hotel industry are directly linked to the daily lives of people, and it is becoming increasingly difficult to run these businesses when the price of an essential raw material like sugar rises so sharply within a short period.
“The government must understand the difficulties faced by industries and immediately introduce a system for supplying sugar at subsidised rates. Otherwise, rising production costs will ultimately be passed on to consumers,” he said.
Explaining the reasons for the price surge, Mr. Lingaraju pointed to a decline in sugarcane production due to inadequate rainfall. He also cited the growing use of sugarcane-based products for ethanol production as another significant factor. “In view of the central government’s policy of increasing the proportion of ethanol blending in petrol, larger quantities of sugarcane and sugar-based products are being diverted towards ethanol production, thereby putting pressure on the availability of sugar in the domestic market,” he noted.
The ethanol blending programme is part of the government’s efforts to reduce crude oil imports and promote cleaner fuel, but it has implications for sugar availability. The MCCI’s appeal underscores the challenges faced by the food processing and hospitality sectors, which are already coping with multiple cost pressures.
The chamber’s statement comes at a time when consumers and businesses alike are feeling the pinch of rising essential commodity prices. While no immediate response from the government has been reported, the MCCI has urged swift action to ease the burden on industries and prevent further price escalation in the market.
