CHENNAI: A sharp rise in sugar prices in recent weeks has pushed up input costs for tea shops, bakeries and juice outlets in Chennai and its suburbs, with some businesses passing on the burden to customers and others absorbing the increase ahead of the festival season.
R Ravikumar, 32, who runs a bakery in Alandur, said the shop was planning to increase the prices of cakes and sweets in the next two days, though the quantum of the hike is yet to be decided. “If the increase in sugar prices was minimal, we would not have raised prices. But the price of a 25-kg bag has risen from around Rs 1,000 to Rs 1,500 in a few weeks,” he said.
A juice shop in Chetpet has put up a notice citing the sugar price rise as the reason for a temporary Rs 5 increase per juice serving. A juice shop in Adambakkam has also raised prices by Rs 5 per serving. Its owner, Logesh, said customers were informed of the revised rates before placing orders instead of relying on posters or banners.
In Urapakkam, fresh juice shop owner Chandrasekar S said prices of badam milk, fruit mixer and rose milk had increased by Rs 5, while fresh juices had become Rs 10 costlier over the past 15 days. “I used to spend around Rs 250 a day on sugar. Now, it is around Rs 300,” he said. However, not all businesses have passed on the increase.
Saran R, owner of a cafe in Urapakkam, said he had kept juice prices unchanged despite the higher sugar cost. He said the cafe was managing the impact by offering brown sugar to customers, as its price remains unchanged. Tea shops, too, have largely refrained from raising prices.
M Kannan, 40, who runs a tea shop in Nanganallur, said there was no immediate plan to increase the prices of tea, coffee or other beverages. He said prices had already been raised when commercial LPG prices went up and had not been reduced since.
Sugar wholesaler Ramesh S attributed the recent price rise partly to lower production and changes in cropping patterns. “India is running slightly short on sugar production. With the monsoon delayed, some farmers shifted to moong dal and other crops. Sugar was around Rs 40 a kg, then rose to Rs 70 and is now coming down,” he said. He added that traders generally stock sugar ahead of the festival season, but restrictions on stock limits could help prices ease further.
