Sugar prices rise over Rs 1 per kg for second consecutive day to Rs 65 amid festive demand

Sugar prices rose for the second consecutive day on Wednesday, with the all-India average retail price increasing by more than Rs 1 per kg amid higher festive demand, government data showed. The average retail price stood at Rs 65.05 per kg on August 26, up from Rs 63.97 per kg a day earlier.

Retail sugar prices remain elevated even as ex-mill rates have fallen by nearly 20% following the Centre's decision to allow imports of 10 lakh tonnes of raw sugar and take steps to curb speculation and hoarding.



Also Read: Taking Stock: Window to process and sell imported sugar extended

According to data from the Department of Consumer Affairs' Price Monitoring Division, the average retail price is 34% higher than the Rs 48.68 per kg recorded a month ago. It is also 41% above the year-ago level of Rs 46.27 per kg.

The maximum retail selling price recorded on Wednesday was Rs 76 per kg, while the modal price was Rs 65 per kg.

Ex-mill prices fall, retail impact delayed

The government and sugar industry bodies have said that ex-mill prices have declined in recent days, but the fall has not yet translated into lower retail prices.

Food Secretary Sanjeev Chopra said earlier this week that the ex-mill price of sugar had declined 18% to Rs 55 per kg after the government allowed imports and acted against speculation and hoarding.

Also Read: India to divert 350,000 tonnes of sugar exports to local market amid shortage

"Ex-mill prices of sugar, which were jacked up by mills, have started cooling down. They have declined to Rs 55 per kg and will further drop in the coming days," Chopra told PTI.

Ex-mill prices had risen to a record Rs 67 per kg last week. Chopra said the increase was not driven by market fundamentals, pointing to sufficient sugar stocks in the country.

Wholesale prices also rise

Wholesale sugar prices also increased marginally on Wednesday to Rs 60.36 per kg, according to government data. The average wholesale price was Rs 45.34 per kg a month ago and Rs 43.02 per kg a year ago.

To contain prices, the Centre has allowed imports of 10 lakh tonnes of raw sugar until October 31. It has also imposed stock limits on dealers and bulk consumers, including beverage makers. Sugar exports had already been banned earlier.

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) estimates India's net sugar production, after diversion to ethanol, at around 279 lakh tonnes in the 2025-26 marketing year ending September.

The country started the marketing year with an opening stock of 50 lakh tonnes. Domestic sugar demand is estimated at 280-285 lakh tonnes, while 8 lakh tonnes was exported before the government imposed the ban.

ISMA has projected closing stocks at around 35 lakh tonnes at the end of September.

The association estimates that 30 lakh tonnes of sugar will be diverted to ethanol from the gross sugar output of 309 lakh tonnes this marketing year.

ISMA had initially estimated gross sugar production at 345 lakh tonnes for 2025-26. It later revised the estimate downward after bad weather and pest attacks affected the sugarcane crop.


(With inputs from PTI)