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Retailers, quick commerce companies limit sugar rush amid stock pain

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Retailers, quick commerce companies limit sugar rush amid stock pain

Retailers and quick-commerce platforms including D-Mart, BigBasket, Blinkit and Swiggy Instamart have started limiting sugar purchases as supplies tighten ahead of the festive season. Retail sugar prices have risen about 40% in two months.

Pune | New Delhi: Retailers such as D-Mart and quick commerce platforms like BigBasket , Blinkit and Swiggy Instamart have begun restricting sugar purchases by consumers amid tightening supplies ahead of India’s peak festive season. The squeeze has led to a 40% surge in retail prices over the past two months. The curbs, with some retailers limiting purchases to 3 kg to 5 kg, come as packaged food makers face higher costs not just on account of sugar but also edible oil, putting pressure on margins at a time when demand typically rises sharply. Manufacturers are preparing to raise prices by at least 5% to 6%, with some expecting further increases if sugar prices remain elevated. “We have no choice but to increase prices by about 5%,” said the chief of a leading domestic snack food maker. Advt

The price spike has been attributed to an unanticipated fall in sugar production below initial estimates, exports of 800,000 tonnes of sugar and alleged hoarding by some trade intermediaries. That’s said to have been exacerbated by incorrect production estimates by various industry groupings such as the Indian Sugar and Bio-energy Manufacturers’ Association (ISMA). Rationing Exercise India allowed the import of one million tonnes of sugar last week to tame prices. Big staples companies confirmed to ET that many retail and ecommerce companies are rationing stocks to two-three packs of 1 kg or one pack of 5 kg.


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