The average all-India retail price of sugar has declined by 3.85% to Rs 62.57 per kg in a week, following recent government measures including allowing imports and tightening of stockholding norms for bulk users and dealers, according to official data.
The retail price of the sweetener declined from Rs 65.08 per kg a week ago. However, the prices are still ruling 27% higher than the previous month's level of Rs 49.33 per kg.
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The average wholesale price of sugar too dropped to Rs 57.62 per kg on Sept. 2 from Rs 60.39 per kg a week ago, as per the data maintained by the consumer affairs ministry.
The drop in wholesale price takes time to reflect in the retail market because retailers who bought stock at the earlier, higher rates are unwilling to sell at a loss and will continue pricing their existing inventory at the older rate until it is exhausted, according to sources.
A retailer typically holds 10-15 bags of sugar, each weighing 50 kg. Only once fresh stock is procured at the lower rate will retail prices adjust accordingly.
"It takes at least ten days to reflect changes in the retail price," an industry source said.
To check a sudden rise in sugar prices, the government took a series of measures, including allowing import of 10 lakh tonnes of sugar, and tightening of stock holding norms for bulk users and dealers.
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The Centre has blamed mills for "jacking up" prices, insisting the country has ample sugar stocks — even as production estimates for the 2025-26 marketing year (October-September) have been revised down to 306 lakh tonnes, from an earlier projection of 343 lakh tonnes.
Annual domestic demand is pegged at around 280-285 lakh tonnes.
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