Sugar prices down by up to 18% from record highs:Prices from the factory drop to ₹55/kg; retail market prices to decrease soon as well

After the government allowed the import of sugar, prices have fallen by up to 18% to ₹55 per kg. These are ex-mill prices, meaning the price at which sugar leaves the factory. Last week, sugar prices had reached an all-time high of ₹67 per kilogram. Prices fell due to import permission and crackdown on hoarding Union Food Secretary Sanjeev Chopra, in a conversation with PTI, stated that the government has taken several important steps to control sugar prices. Recently, the central government allowed the import of 10 lakh tonnes of raw sugar. Additionally, stock limits have been imposed on large buyers, and states have been instructed to prevent hoarding. Following these decisions, prices at the mill level have started to decline. Relief will soon be felt in retail and wholesale markets as well According to Prakash Naiknavare, there is usually a difference of ₹2 to ₹3 per kg between the ex-mill rate and the wholesale market price. Meanwhile, there is a difference of ₹7 to ₹8 per kg between ex-mill and retail market rates. Currently, customers have not received full relief in the retail market. According to data from the Ministry of Consumer Affairs, the average wholesale price of sugar across the country was recorded at ₹58.29 per kg and the average retail price at ₹63.05 per kg on August 24. However, after the decline in prices at the mill level, sugar will soon become cheaper for common consumers at retail shops as well. Flying squads deployed across the country to crack down on hoarders Prakash Naiknavare, Managing Director of the National Federation of Cooperative Sugar Factories (NFCSF), said ex-mill prices have fallen below Rs 55 per kg across the country. Flying squads have been deployed to prevent black marketing and hoarding in the market, conducting frequent inspections. Government crackdowns are likely to further drive down prices in the coming days.
Restrictions on keeping stock for more than 15 days The government has imposed stock limits on sugar traders and dealers. Under the new rules, dealers who deal in more than 10 metric tons of sugar per month cannot hold stocks for more than 15 days. Apart from this, three more steps have been taken… Sufficient sugar stocks in the country; claims of shortage false According to the Food Ministry, sugar production in the country for the marketing year 2025-26 (October-September) is estimated to be around 306 lakh tonnes.
Although this figure is lower than the initial estimate of 343 lakh tonnes, the country’s annual domestic demand remains only around 280 to 285 lakh tonnes. In such a situation, the country has sufficient buffer stock of sugar available to meet the demand. Knowledge Part: What is Ex-Mill Rate? This is the price at which sugar mills sell sugar to traders or wholesalers. It excludes transportation, local taxes, and the retailer’s profit. When the ex-mill rate falls, prices in the retail market also come down after a gap of a few days.