Following the unexpected growth in ex-factory rates, the retail prices of sugar in retail will increase by Rs 3 per kilogram.

During the last week, sugar millers decided to lift costs of the sweetener by 4-6%in order to cut down losses after prices drop below production cost.

The Bombay Sugar Merchants Association's President, Ashok Jain said, "During the last few moths, whole sale sugar prices were ruling at prices ranges from Rs 2,350-Rs 2,600 per 100 kg, hence the consumers were able to get sugar at around Rs 30 per kg. Now with the sudden increase in ex-factory prices of sugar in the wholesale market will go up to Rs 2,900 to Rs 3,000 and retail prices of sugar will go up by about Rs three per kg."

Jain said that the sugar trade is greatly disturbed by the verdict of the captains of the sugar business to fix the minimum floor price for sugar to be sold by all the factories in the state as also the sugar factories in other phases.

In the case of sugar an item of daily use for the average consumer the verdict is ethically wrong, as it adversely affects every customer.

Jain asked the heads of the sugar industry not to implement the decision to increase the price hike by association that will bring dishonor to the sugar business.

He stated that the Association has also appealed the administration to get involved in the issue and permit open market forces to function under normal conditions.

The Indian Sugar Mills Association stated the country's sugar scrips at the beginning of the fresh season in October will go up to 5.9 million tonnes.