Sugar prices cool 18% after hitting record high, ex-mill rates fall to Rs 55 per kg

Sugar prices have dropped by 18% following a record high last week, with ex-mill rates now at Rs 55 per kg. According to Food Secretary Sanjeev Chopra, the decrease is due to the government's recent decision to permit sugar imports and crackdown on hoarding and speculation. Chopra explained that the initial price surge was not caused by a shortage of sugar, as the nation has ample stock, but rather mills artificially inflating prices.

The ex-mill sugar price, which had skyrocketed, is beginning to decline and will continue to drop, Chopra told PTI. In the 2025-26 marketing year, sugar production is projected at 306 lakh tonnes, less than the initial estimate of 343 lakh tonnes. However, domestic demand is expected to be around 280-285 lakh tonnes, and the country holds sufficient sugar stocks.

The Centre recently authorized imports of 1 million tonnes of raw sugar and set stock limits for bulk consumers to prevent hoarding and speculation. National Federation of Cooperative Sugar Factories (NFCSF) Director Prakash Naiknavare reported that ex-mill prices have now reached Rs 55 per kg or below nationwide. Flying squads have been dispatched across India to monitor hoarding activities.

Naiknavare noted that the government's actions have halted the price rise, and mill-level rates might fall further. While the gap between ex-mill and wholesale prices typically ranges from Rs 2-3 per kg, the ex-mill to retail price gap is usually Rs 7-8 per kg. Nevertheless, consumers have not yet experienced a decline in sugar prices in wholesale and retail markets.

According to consumer affairs ministry data, the average wholesale price across India was Rs 58.29 per kg on August 24, while the average retail price stood at Rs 63.05 per kg.