Summary
Rain and bugs like Red Rot and Top Borer damaged the sugarcane.
People buy more sugar before holidays, increasing demand.
Less sugar is being turned into ethanol fuel, so that isn’t the main reason.
World shortages also push prices higher.
Key Points
5 points1
Sugar price rose from 48.18 to 55.70 Indian rupees per kilogram in a month.
2
Sugar used for ethanol fell from 12% to about 9%.
3
Expected production is 306 million tonnes, lower than the earlier estimate of 343 million.
4
The government set a limit of 400 tonnes for dealers to keep.
5
Enough sugar is stored to last until the new harvest in October.
New Words to Learn
9 wordsEthanol
a fuel made from plants like corn
Maize
corn, a grain used for making fuel
Speculation
guessing about prices to try to earn money
Hoarding
keeping a large amount of something to sell later at a higher price
Red Rot
a disease that makes sugarcane turn red and die
Top Borer
a small insect that eats sugarcane
Waterlogging
when the ground is too wet and plants can’t grow well
Subsidy
money the government gives to help a business stay afloat
Stock limit
the most a seller is allowed to keep at one time
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