1 week ago
Sugar Tender Prices Fall as Retail Rates Reach Record High
Sugar prices paid by some buyers to mills went down on Saturday.
However, the price shoppers paid in stores rose to a new high.
One sugar mill in Maharashtra sold sugar for ₹5,850 per quintal.
A government official said there is enough sugar in the country.
He said the price rise may have been caused by speculation, hoarding and profiteering.
Sugar prices had increased because people feared supplies might be tight before October.
The government has allowed 1 million tonnes of raw sugar to be imported without duty.
Officials expect new sugar production and existing stocks to meet demand during the festival season.
Sugar tender prices fell by up to ₹500 a quintal on Saturday.
Retail sugar prices rose to ₹60.26 a kg from ₹58.23 the previous day.
A Maharashtra mill sold S-30 sugar at ₹5,850 per quintal in a 70-tonne tender.
Food Secretary Sanjeev Chopra called the retail price increase unjustified and blamed speculation, hoarding and profiteering.
The Centre has allowed duty-free imports of 1 million tonnes of raw sugar to address supply concerns.
- Who
- Sugar mills, traders, consumers and the Food Department, represented by Food Secretary Sanjeev Chopra.
- What
- Sugar tender prices declined while retail prices increased to ₹60.26 a kg.
- Where
- India, including a sugar tender held by a Solapur-based mill in Maharashtra.
- When
- Saturday, August 22, 2026; the preceding retail price was recorded on Friday.
- Why
- Retail prices rose amid concerns about supplies before October, while the Food Secretary attributed the increase to speculation, hoarding and profiteering.
Government and Supply View
Market and Supply-Concern View
Cause of the price increase
Government and Supply View
Food Secretary Sanjeev Chopra said the increase was unjustified and artificially driven by speculation, hoarding and profiteering.
Market and Supply-Concern View
The market faced fears that domestic supplies might not meet demand through October, especially during the festival season.
Availability of sugar
Government and Supply View
The Food Secretary said domestic availability and stocks were ample, with 33–35 lakh tonnes expected to remain at the end of the season.
Market and Supply-Concern View
Sugar prices rose by more than 35% since June because of concerns about supply adequacy before the next crushing period.
Expected retail direction
Government and Supply View
A trade source said retail prices would likely begin reflecting lower tender prices from Monday.
Market and Supply-Concern View
Despite lower tender prices, retail rates rose by more than ₹2 a kg on Saturday, showing that the decline had not yet reached consumers.
Key facts
- Retail price
- ₹60.26 per kg on Saturday, up from ₹58.23 on Friday.
- S-30 tender price
- ₹5,850 per quintal in a 70-tonne sale by Loknete Baburao Patil Agro Industries Ltd.
- Other tender prices
- S-30 fell from ₹6,600 to ₹6,100 per quintal, while M-30 fell from ₹6,725 to ₹6,225.
- Expected ending stocks
- The Food Secretary estimated comfortable stocks of 33–35 lakh tonnes.
- Duty-free imports
- The Centre permitted duty-free imports of 1 million tonnes of raw sugar.
- Expected production
- Sugar production for October 2026–September 2027 is expected to be around 306 lakh tonnes, including ethanol diversion.
- Exported sugar
- Eight lakh tonnes were exported before the Centre imposed an export ban.
Quotes
Sanjeev Chopra
India’s Food Secretary
“It is unacceptable and artificially created by speculation, hoarding and profiteering”
thehindubusinessline.com
“Domestic sugar availability and stocks are ample and adequate”
thehindubusinessline.com
A trading source
An unnamed source familiar with sugar trading
“The company sold 70 tonnes. Apart from this, whoever wanted to buy, the mill offered it at the same rate.”
thehindubusinessline.com
Sources
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