Sugar prices stay high across India despite Centre's efforts

Sugar prices remained above Rs 60 per kg in most retail markets across the country on Sunday, 30 August, despite several steps taken by the government to check the price rise, according to official data.

Data from the Consumer Affairs Ministry showed that the all-India average retail price of sugar was Rs 64.24 per kg on Sunday, up 1.77 per cent from Rs 63.12 per kg a week earlier. The current price is 30 per cent higher than a month ago and 38.63 per cent higher than the same period last year.

The maximum retail price recorded was Rs 74 per kg, while the minimum was Rs 40 per kg as on 30 August. City-wise, retail sugar was selling at Rs 62 per kg in Delhi, Rs 66 per kg in Mumbai, Rs 63 per kg in Chennai and Rs 68 per kg in Ranchi.

Wholesale prices also remained firm at Rs 59.73 per kg, up 31 per cent month-on-month and 38.63 per cent year-on-year. The price was Rs 58.66 per kg a week ago.

The elevated retail and wholesale prices come even as ex-mill rates have declined nearly 20 per cent following the government's decision to allow duty-free imports of 10 lakh tonnes of raw sugar.

Industry sources point out that a Rs 2-3 per kg gap between ex-mill and wholesale prices, and a Rs 7-8 per kg gap between ex-mill and retail prices, is typical.

Apart from opening up imports, the government has tightened stockholding norms for bulk users and dealers and had earlier banned sugar exports.

The Centre has blamed mills for "jacking up" prices, insisting that the country holds ample sugar stocks. This is despite production for the 2025-26 marketing year (October-September) being pegged lower at 306 lakh tonnes, down from the earlier estimate of 343 lakh tonnes.

Annual domestic demand is estimated at around 280-285 lakh tonnes.

With PTI inputs