2 hrs ago
Indian Sugar Mills and Traders Clash as Prices Decline
Sugar mills and traders in India are arguing over how much sugar should cost.
Traders bought large amounts before the festive season because they expected prices to rise.
Instead, people bought less sugar and prices began falling.
This left traders with expensive stock that may now lose value.
Mills are also required to sell 40% of their allocated sugar by September 7.
Some traders are not collecting the sugar, and there are not enough trucks in some places.
Mills are keeping their quoted prices high, although they may lower them if pressure increases.
The government has taken steps such as allowing duty-free imports and closely monitoring sugar sales.
Retail prices remain high compared with wholesale prices, while international prices have also weakened.
Sugar mills kept open rates high while wholesale prices fell and retail prices stayed near ₹60 a kg.
Traders who stocked up before the festive season face potential losses after expected demand and price increases failed to materialise.
Mills must sell 40% of their allocated sugar quota by September 7, but weak buying and transport shortages threaten the deadline.
S-30 sugar was quoted near ₹4,500 a quintal, while Mumbai wholesale prices fell by ₹50-100 to ₹4,850 a quintal.
India’s average retail sugar price rose to ₹61.09 a kg, while global raw and white sugar prices also declined.
- Who
- Indian sugar mills, traders, consumers, and government regulators, including the Department of Consumer Affairs and the Food Ministry.
- What
- Sugar mills and traders are disputing prices as wholesale and international sugar prices decline, while a mandatory sales quota deadline approaches.
- Where
- India, including markets in Mumbai and Chennai; global prices cited were from New York and London.
- When
- The situation was reported on September 7, 2026, with two days remaining to lift sugar allocated for the first fortnight.
- Why
- Festive-season demand was weaker than traders expected, leaving them with costly inventories while mills resisted reducing prices and faced quota and logistics pressures.
Sugar Mills
Sugar Traders
Pricing strategy
Sugar Mills
Mills are keeping open rates high and resisting a sharp price reduction, although they may lower prices when pressure increases.
Sugar Traders
Traders say mills have raised prices and are leaving traders under pressure as wholesale prices decline.
Quota deadline
Sugar Mills
Mills need buyers to lift allocated sugar and risk penalties or regulatory action if they fail to sell the required 40%.
Sugar Traders
Traders are reluctant to lift stock because demand is weak and they already hold inventories bought at higher prices.
Market outlook
Sugar Mills
Mills are trying to sell through open-market rates after the tender route became unviable, but they have not attracted enough buyers.
Sugar Traders
Traders are seeking to buy at lower prices to offset earlier purchases and manage potential losses in a falling market.
Key facts
- Retail price
- The all-India average rose to ₹61.09 per kg from ₹60.80 per kg on Sunday.
- Wholesale price
- Mumbai wholesale sugar prices fell by ₹50-100 per quintal to ₹4,850 per quintal.
- Mill quotation
- S-30 grade sugar was quoted around ₹4,500 per quintal.
- Sales requirement
- Mills must sell 40% of their allocated quota before the first week of the fortnight ends.
- Deadline
- The 40% stock-sale requirement was due by September 7.
- Government import measure
- India permitted duty-free imports of 1 million tonnes of raw sugar.
- International prices
- October raw sugar futures reached 18.07 cents a pound, while London October white sugar was $523.90 a tonne.
Quotes
An unnamed sugar trader in Chennai
Sugar trader based in Chennai
“With only two days remaining to lift the allocated sugar for the first fortnight, the scramble for vehicles has turned into a crisis of its own,”
thehindubusinessline.com
“Mills seem to be getting away with whatever they do, while traders have their backs to the wall,”
thehindubusinessline.com
Dilip Patil
Managing Director of Samarth SSK Ltd and Co-Chairperson of the Sugar Bioenergy Forum
“Festive-season speculation on sugar has backfired after traders aggressively stocked up, expecting higher prices that never materialised amid weak consumer demand. Factories now cannot sell the mandatory 40 per cent of stock due by September 7 without cutting prices they refuse to accept,”
thehindubusinessline.com
Sources
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