- Sugar retail price rose to Rs 64 per kg on Tuesday amid recent govt measures
- All-India average sugar price up 31% from last month at Rs 63.97 per kg
- Ex-mill sugar prices dropped 18% to Rs 55 per kg after govt import and stock limits
Sugar continued its upward march, rising by about Rs 1 per kg to nearly Rs 64 on Tuesday in the retail market as recent government measures to curtail the surge take effect.
On Monday, the average price was Rs 63.05 per kg.
As per the data compiled by the Department of Consumer Affairs (Price Monitoring Division), the all-India average rate of sugar stood at Rs 63.97 per kg on Aug. 25, a 31% increase from Rs 48.81 per kg a month back.
The average rate is 38% higher than the year-ago level, when sugar was available at Rs 46.31 per kg.
The data showed that the maximum selling price on Monday was Rs 76 per kg, while the modal rate was Rs 65 per kg.
The government and sugar industry bodies said ex-mill rates have fallen in the past few days. However, the impact is yet to be seen at the retail level.
Retail prices have risen sharply in the last one month, hurting the interests of poor and middle-class people.
The wholesale price of sugar stands at Rs 59.23 per kg on Monday against Rs 45.35 per kg a month ago and Rs 43.01 per kg a year ago, data showed.
Earlier on Monday, Food Secretary Sanjeev Chopra said the ex-mill price of sugar has declined by 18% to Rs 55 per kg since the government's decision to allow imports and clamp down on speculation and hoarding of the sweetener.
Ex-mill prices of sugar had shot up to a record Rs 67 per kg last week, a spike Chopra attributed to mills "jacking up" rates.
"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.
The jump in prices, he said, was not rooted in fundamentals, as the country has ample sugar stocks despite production for the 2025-26 marketing year (October-September).
To control prices, the Centre has recently allowed imports of 10 lakh tonnes of raw sugar by Oct. 31. It has imposed stock holding limits on dealers as well as bulk consumers like beverage makers. Exports were already banned a few months back.
According to the Indian Sugar and Bio-Energy Manufacturers Association (ISMA), India's net sugar production (after diversion to ethanol) is estimated at around 279 lakh tonnes in the 2025-26 marketing year (October-September), while the opening stock was 50 lakh tonnes.
The annual domestic demand is projected at 280-285 lakh tonnes, while the country exported 8 lakh tonnes of sweetener before the government imposed a ban.
ISMA has projected the closing stock at 35 lakh tonnes at the end of September.
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The association noted that 30 lakh tonnes of sugar is estimated to be diverted in the current marketing year from the gross sugar output of 309 lakh tonnes.
ISMA initially estimated that the country's gross sugar output would be 345 lakh tonnes for the 2025-26 marketing year, but later revised downwards as sugarcane crops were affected by bad weather and pests.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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