Sugar and milk conspire to make my tea dearer!

Few months back no one has ever thought of, that sugar will be touching 45-50 Rupees/ kg. But what was never though, happened and to our surprise costing of one kilogram of sugar today is equal to half a kilogram of sweets a few days ago.

The reason for steep increase in price is due to high demand and low supply, There is low supply of sugarcane because of the bad monsoon. After we tasted the costliest sugar of our life (hope that it does not cross this level in my life at least) we are going to face the heat of rising milk prices especially in north India. There is a sudden deficit between the demand and supply as a result of which prices are supposed to be heading north.

To abridge the gap between demand and supply there is a probability of price rise; also milk from other parts of India will be routed to north India market as a result of which there can be short supply of milk in the remaining country. And as we all understand a little bit of economy and demand supply rule “Short supply result to price increase

Image source: blogs.phillyburbs.com

1 comment:

  1. Parthiv Patel.January 20, 2010

    I am not sure if Mr. Pawar knows this much complex economy but i am sure that he has different ideas. As many Indian are suffering from diabetes his plan is to launch "Sugar Free India". 1 >>--> 2 nishan.
    What an idea...

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