Sugar prices remain firm across India despite govt measures to check rise

Sugar prices in India persistently remained above Rs 60 per kilogram across retail markets on Sunday, despite government interventions aimed at curbing the price surge according to official statistics. The Central Consumer Affairs Ministry reported the nationwide average retail price of sugar at Rs 64.24 per kg on Sunday, reflecting a 1.77 percent increase from the previous week's Rs 63.12 per kg. This price point marks a 30 percent increase compared to a month prior, and a 38.63 percent jump from the same time last year.

At its peak, the retail price hit Rs 74 per kg, while the lowest observed retail price settled at Rs 40 per kg. In major cities, Delhi saw sugar retailing at Rs 62 per kg, Mumbai at Rs 66 per kg, Chennai at Rs 63 per kg, and Ranchi at Rs 68 per kg. Wholesale prices, however, held steady at Rs 59.73 per kg, with a 31 percent rise month-on-month and a 38.63 percent surge year-on-year. The wholesale price stood at Rs 58.66 per kg a week earlier.

The high retail and wholesale prices coexist with a significant decline in ex-mill rates, dropping nearly 20 percent following the government's allowance of duty-free imports of 10 lakh tonnes of raw sugar. Industry insiders note that a typical gap between ex-mill and wholesale prices, as well as ex-mill and retail prices, is around Rs 2-3 per kg and Rs 7-8 per kg respectively.

In addition to importing sugar duty-free, the government has tightened stockholding norms for large buyers and traders, and previously prohibited sugar exports. The Central government has accused mills of price inflation, asserting India has sufficient sugar reserves. Despite this, sugar production for the 2025-26 marketing year (October-September) has been forecasted lower at 306 lakh tonnes, compared to earlier estimates of 343 lakh tonnes. Annual domestic demand is projected at 280-285 lakh tonnes.