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The direct impact of continuously rising sugar prices in the country and increasing pressure on supply is now being seen on quick-commerce platforms. Customers on fast-delivery online apps like Blinkit, Swiggy Instamart and BigBasket are now being allowed to buy only a limited quantity of sugar at a time.

While ordering goods on the online app, the message 'Sorry, We Have Limited Quantities Available' is visible on the screens of customers in many areas. In fact, as soon as the festive season starts, the demand for sugar in the market has increased rapidly. In such a situation, amidst increasing concerns regarding shortage of supply, these big companies have set this temporary limit on the purchases of customers.

How much sugar can you buy at one time?

This limit for purchasing sugar on online apps is being decided on the basis of different cities and brands. In some selected areas, customers are able to order only a maximum of 3 packets of 1 kg, while in many places, they are allowed to buy only one packet of 5 kg. This simply means that families who require large quantities of sugar during festivals are now facing difficulties in meeting their demand in a single order.

Sugar prices increased by almost 40% in two months

This pressure on the supply of sugar in the market has also had a direct impact on its retail prices. According to media reports, the price of sugar which was being sold at around Rs 41 per kg in the beginning of June, suddenly jumped to around Rs 65 per kg. However, after the strict steps taken by the government, the market prices have softened a bit and at present it remains around Rs 58 per kg.

Why was the supply of sugar affected?

Along with low production, many other major reasons are also being said to be responsible for this sudden pressure in the Chinese market. Due to export of about 8 lakh tonnes of sugar from the country and accumulation of stock in the market by some middlemen, the concern about the sugar available in the market has increased considerably. Due to increase in demand for sweetness manifold during upcoming festivals, this pressure of supply chain is becoming more visible.

Government took big steps to control prices

To control the uncontrolled prices and supply of sugar, the Government of India has approved duty-free import of 1 million tonnes of sugar. Apart from this, strict stock limit has also been imposed on sugar with the strict objective of preventing hoarding and black marketing in the market.

From August 1 to November 30, a maximum limit of 4,000 quintals of sugar has been fixed for dealers to keep with them. The government has full hope that increasing imports from abroad and major decisions like stock limit will improve the availability of sugar in the market and the prices will fall. At present, common customers are facing limits on apps during festivals, but the rules are expected to be relaxed once the supply is restored.