1 week ago
Sugar Mill Prices Continue Falling as Retail Rates Rise
Sugar became much cheaper for mills to sell, but shoppers still paid more.
Mill-gate prices had fallen by ₹1,500 a quintal from their peak the previous week.
On Wednesday, the average retail price in India reached ₹65.05 per kilogram.
Prices were about ₹65 in Chennai and ₹61 in Mumbai.
Industry sources said shops still had older, more expensive sugar stocks.
They expected prices to fall after retailers bought new supplies.
The government allowed duty-free imports of 1 million tonnes of raw sugar.
It also acted against hoarding and limited how much sugar large buyers could store.
Mill-gate S-grade prices fell to ₹5,050-5,350 a quintal by Wednesday, down ₹1,500 from last week’s peak.
M-30 sugar prices reached ₹5,200-5,450 a quintal, while wholesale prices declined in several major cities.
The all-India average retail price rose from ₹63.97 on Tuesday to a record ₹65.05 a kg on Wednesday.
Retail prices remained high because retailers were selling stocks bought at elevated prices, industry sources said.
Duty-free imports, anti-hoarding measures and tighter bulk-stock limits were cited as factors pushing mill and wholesale prices lower.
- Who
- Sugar mills, buyers, traders, retailers, consumers, industry sources and the Department of Consumer Affairs’ Price Monitoring Division.
- What
- Mill-gate and wholesale sugar prices declined while the all-India average retail price rose to ₹65.05 a kg.
- Where
- India, with prices reported for Chennai, Mumbai, Delhi, Kolkata and Hyderabad, and a sale by Shree Nilkantheswar SSK Limited.
- When
- Tuesday and Wednesday, August 25-26, 2026.
- Why
- Government measures and duty-free imports put downward pressure on mill prices, while retailers’ existing high-cost stocks kept retail prices elevated.
Reasons Retail Prices Remained High
Reasons Sugar Prices Were Falling
Timing of price changes
Reasons Retail Prices Remained High
Industry sources said retailers were still selling stocks purchased at higher prices, so retail prices had not yet reflected cheaper mill-gate sugar.
Reasons Sugar Prices Were Falling
Industry sources expected retail prices to fall once retailers purchased fresh stocks at the lower prices.
Factors behind the earlier surge
Reasons Retail Prices Remained High
Sources said some traders built stocks and took advantage after a Karnataka mill first fixed sugar at ₹6,000 a quintal, prompting other mills to follow.
Reasons Sugar Prices Were Falling
Stakeholders said duty-free imports, action against hoarding, physical-stock monitoring and tighter bulk-buyer limits were pushing prices lower.
Key facts
- Average retail price
- ₹65.05 a kg on Wednesday, up from ₹63.97 on Tuesday.
- S-30 mill-gate price
- ₹5,050-5,350 a quintal on Wednesday; buyers were reportedly offering no more than ₹4,500.
- M-30 mill-gate price
- ₹5,200-5,450 a quintal on Wednesday.
- Wholesale range
- ₹5,800 a quintal in Mumbai to ₹6,500 in Chennai.
- Retail range
- ₹65 a kg in Chennai and ₹61 a kg in Mumbai on Wednesday.
- Reported mill sale
- Shree Nilkantheswar SSK Limited sold 110 tonnes of S-30 sugar at ₹5,120 a quintal from an offer of 187 tonnes.
- Government measures
- Duty-free imports of 1 million tonnes of raw sugar, anti-hoarding action, stock monitoring and a 15-day limit for bulk buyers purchasing over 10 tonnes monthly.
- Global prices
- October New York raw sugar futures rose to 17.57 cents a pound on Wednesday, while London white sugar fell to $520.20 a tonne.
Quotes
An unidentified industry source
An industry source commenting on sugar demand and expected retail price changes
“There are few takers even at this rate,」「Retail prices are high in non-sugar producing States. With prices dropping ex-mill, they will drop below ₹60 in a couple of days.”
thehindubusinessline.com
“Mill gate prices have dropped to ₹5,050-5,350 a quintal for S-30 grade sugar. Buyers are not willing to offer more than ₹4,500. They are calling the shots now.”
thehindubusinessline.com
Sources
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