Wholesale buyers savour softening sugar even as households' wait for a sweeter deal continues

Sugar prices in the wholesale market have declined by about 15% following the Centre’s decision to allow duty-free imports of 10 lakh tonnes of raw sugar and step up action against hoarding.

The fall has raised expectations that prices could ease further, although consumers are yet to see a meaningful reduction in retail rates, ToI reported on August 25.

The wholesale market reacted almost immediately to the government’s measures, even before import orders were placed. Traders and mills are factoring in the prospect of higher availability after the Centre announced the import window and said 100 teams would inspect stocks to detect hoarding and manipulation.


The government has estimated that around 36 lakh tonnes of sugar is currently available in domestic stocks. With the proposed imports, it expects supplies to remain sufficient until the next crushing season adds fresh production to the market.

Factory-gate prices have declined by around Rs 800 per quintal over the past three days, ToI's report (by Abhijeet Patil) said citing traders.

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Wholesale sugar is now selling at about Rs 62 per kg and could fall by another Rs 3 per kg if supplies improve, Kolhapur-based trader Gautam Shah told the newspaper.

The expected start of the crushing season is also likely to support availability. Industry participants expect sugar mills to begin operations by the middle of October, helping replenish supplies ahead of the festive season and reducing pressure on prices.

The decline in wholesale rates, however, has not yet translated into cheaper sugar for households.

Retail prices remain around Rs 75 per kg as traders continue to sell inventory bought when wholesale prices were higher.

Retailers are expected to lower prices once these stocks are exhausted and cheaper supplies begin moving through the distribution chain.

Consumer buying patterns have also started to reflect expectations of lower prices. Some households are limiting purchases to smaller quantities instead of buying several kilograms at a time, retailers said.

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A retailer in the market said he had purchased sugar at Rs 68 per kg three days earlier and was still selling it at Rs 75. He expects to pass on the wholesale price reduction only after the existing inventory is cleared.

Meanwhile, the latest fall in sugar prices has opened another front in the industry. The Swabhimani Shetkari Sanghatana has sought an additional payment of Rs 300 per tonne from cooperative sugar mills for sugarcane crushed during the 2025-26 season.

The farmers’ organisation has argued that cane growers should receive a share of the higher returns generated during the recent rise in sugar prices. It has warned of protests and possible disruption to sugar dispatches if mills do not accept the demand.

The developments come as the government seeks to balance consumer concerns over high sugar prices with the interests of growers and the sugar industry.

While increased imports and action against stock manipulation could keep wholesale prices under pressure, the extent and speed of any retail correction will depend on how quickly cheaper sugar reaches consumers.