Despite dropping 3.85% to ₹62.57 per kg from ₹65.08 per kg in a week, average retail price of sugar in India has remained steadily over ₹62 per kg in most markets, PTI reported today, citing data from the Consumer Affairs Ministry.
While the drop follows recent government measures, including allowing and tightening of stockholding norms for dealers, prices remain 27% higher than the ₹49.33/kg recorded in the previous month, it added.
On the wholesale side, average across India has dropped to ₹57.62/kg from ₹60.39/kg a week ago, ministry data on 2 September showed, it added.
When will wholesale sugar prices reflect on retail side?
According to the report, the drop in wholesale price will take time to reflect in the retail market. This is “because 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,” sources told the news agency.
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 10 days to reflect changes in the retail price,” an industry source told PTI.
Govt takes measures to check sugar prices
The Centre undertook a series of measures, including banning sugar exports, allowing import of 10 lakh tonnes of , and halved holding limit for dealers from 4,000 quintals to 2,000 quintals for the period between 15 September to 30 November. Further, a dealer cannot hold any stock for more than 30 days from the date of receipt.
The moves came after sugar prices hit record highs in the world’s second-largest producer of the , Bloomberg reported last week.
The Centre has blamed mills for “jacking up” prices and insisted that India has ample sugar stocks — even as production estimates for the 2025-26 marketing year (October-September) were revised down to 306 lakh tonnes, from earlier projected 343 lakh tonnes. Meanwhile, the annual domestic demand is pegged at around 280-285 lakh tonnes.
Sugar demand surges amid festive season
Sugar prices recently hit a in India, which is the world’s second-largest producer of the commodity and officials feel the need to make moves to boost local supplies ahead of the festive season.
India typically sees large demand for sugar and subsequent rise in price for the commodity annually during the period as consumption peaks from late August through January for use in traditional sweets, processed foods and beverages, the Bloomberg report added.
The Bloomberg report also said that there is a global supply strain in the sugar market and concerns are increasing that the El Niño weather phenomenon will impact harvests. Recently, similar speculation pushed New York futures to the highest in about a year.
The same worries are reflected in India, where rains are 13% below normal levels, according to the India Meteorological Department (IMD). It added that sugarcane crops — used to produce majority of India’s sugar — are dependent on the rainfall.
The deficit stood at more than 40% near the end of June 2026 (start of the annual rainy season) and has delayed sowing of some crops, it added.
(With inputs from Agencies)