1 week ago
Sugar Prices Rise Again as Festival Demand Tests Government Measures
Sugar became more expensive for shoppers for the second day in a row.
The average retail price reached about Rs 65 per kilogram on August 26.
This was much higher than prices one month and one year earlier.
The government and sugar industry said prices charged by mills had started falling.
However, shops had not yet passed those lower prices on to customers.
The government allowed 10 lakh tonnes of raw sugar to be imported without duty.
It also limited how much sugar dealers and large users can store.
Officials are checking stocks to discourage hoarding and illegal selling.
Families may get relief if new supplies and lower mill prices reach stores.
All-India retail sugar prices rose to Rs 65.05 per kg on August 26, up from Rs 63.97 the previous day.
Retail prices were 34 percent higher than a month earlier and 41 percent above year-ago levels.
Wholesale sugar prices increased to Rs 60.36 per kg, despite reported declines in ex-mill rates.
The government approved duty-free imports of 10 lakh tonnes of raw sugar and imposed stock limits on dealers and bulk users.
Officials attributed the increase to festive demand, while inspections and supply measures have yet to lower retail prices.
- Who
- Consumers, sugar mills, dealers, bulk users, the government, and sugar industry bodies including the Indian Sugar and Bio-Energy Manufacturers Association.
- What
- Retail and wholesale sugar prices rose again while the government pursued imports, stock limits, and inspections to increase supply and control prices.
- Where
- Across India, with price data compiled by the Department of Consumer Affairs’ Price Monitoring Division.
- When
- Retail prices were measured on August 26, after rising on August 25; stock limits for large industrial users begin September 1, and imports are allowed by October 31.
- Why
- Officials linked the latest retail increase to stronger festive demand. The government says its measures are intended to increase supply and curb speculation, hoarding, and black marketing.
Government and Industry View
Retail Consumer Reality
Are sugar prices cooling?
Government and Industry View
The government and sugar industry said ex-mill prices had declined 18 percent to Rs 55 per kg after imports and action against speculation and hoarding.
Retail Consumer Reality
Retail prices rose to Rs 65.05 per kg and wholesale prices also increased, indicating that the lower ex-mill rates had not yet reached consumers.
What is driving the increase?
Government and Industry View
Food Secretary Sanjeev Chopra said the earlier ex-mill spike was not based on market fundamentals because India had ample stocks; officials attributed the latest retail rise to festive demand.
Retail Consumer Reality
Households continued facing substantially higher prices, with retail sugar up 34 percent from a month earlier and 41 percent from a year earlier.
Will government measures bring relief?
Government and Industry View
Duty-free imports, stock limits, export restrictions, and physical inspections are intended to increase supply and prevent hoarding and black marketing.
Retail Consumer Reality
Consumers may not see relief until imported sugar and lower mill prices are passed through to retail markets, which had not happened by August 26.
Key facts
- Retail price
- The all-India average reached Rs 65.05 per kg on August 26, compared with Rs 63.97 on August 25.
- Monthly comparison
- The August 26 price was 34 percent higher than Rs 48.68 per kg a month earlier.
- Annual comparison
- The August 26 price was 41 percent higher than Rs 46.27 per kg a year earlier.
- Wholesale price
- The average wholesale rate rose to Rs 60.36 per kg, from Rs 45.34 a month earlier and Rs 43.02 a year earlier.
- Ex-mill price
- Food Secretary Sanjeev Chopra said ex-mill prices had fallen 18 percent to Rs 55 per kg after reaching Rs 67 per kg the previous week.
- Import measure
- The government approved duty-free imports of 10 lakh tonnes of raw sugar by October 31.
- Storage limits
- Dealers may hold up to 400 tonnes, while large industrial users from September 1 may hold no more than 15 days of consumption.
- Supply outlook
- The Indian Sugar and Bio-Energy Manufacturers Association estimated net 2025-26 production at 279 lakh tonnes, opening stock at 50 lakh tonnes, and closing stock at 35 lakh tonnes.
Quotes
Sanjeev Chopra
India's Food Secretary
“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.”
m.rediff.com
Sources
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