Retail sugar price drops 3.85% to ₹62.57/kg in a week: Govt data

In a week, the average retail price of sugar in India has dropped by 3.85 percent to ₹62.57 per kilogram, according to government data. The price decreased from ₹65.08 per kg the previous week. Despite the decline, prices are still 27 percent higher than the previous month's level of ₹49.33 per kg. The wholesale price of sugar also fell to ₹57.62 per kg on September 2, down from ₹60.39 per kg a week earlier.

However, the lag in retail price adjustment means changes in wholesale rates take time to impact the retail market. Retailers with existing stock at higher rates often continue to charge those prices until their inventory is depleted; typically, a retailer holds 10-15 bags of sugar, each weighing 50 kg. Once fresh stock is procured at the lower rate, retail prices will adjust accordingly, taking at least ten days to reflect the change, according to an industry source.

To curb sudden price hikes, the government implemented several measures, such as allowing the import of 10 lakh tonnes of sugar and tightening stockholding norms for bulk users and dealers. The Central government has accused mills of price gouging, claiming the nation has sufficient sugar stocks. While production estimates for the 2025-26 marketing year (October-September) have been reduced to 306 lakh tonnes from a previous forecast of 343 lakh tonnes. Annual domestic demand is estimated at 280-285 lakh tonnes.