1 week ago
Indian Sugar Prices Rise Again Despite Government Measures
Sugar is becoming more expensive in Indian shops.
On August 26, the average price was about Rs 65 per kilogram.
That was higher than the price one day earlier and much higher than prices a month and a year before.
Some sellers charged as much as Rs 76 per kilogram.
Wholesale prices also went up.
The government says sugar mills have lowered the prices they charge, but this lower price has not reached shoppers yet.
The government has allowed sugar imports and placed limits on how much dealers and large buyers can hold.
Officials said festive demand may also be pushing retail prices higher, while they maintain that India has enough sugar overall.
India’s average retail sugar price rose to Rs 65.05 per kg on August 26, up from Rs 63.97 the previous day.
The August 26 average was 34% higher than a month earlier and 41% above the year-ago level, according to government data.
The maximum retail price was Rs 76 per kg, while the modal rate was Rs 65 per kg.
Wholesale sugar prices increased to Rs 60.36 per kg, even though ex-mill prices had reportedly fallen 18% to Rs 55 per kg.
The government allowed imports of 10 lakh tonnes, imposed stock limits and maintained an export ban, while officials cited festive demand and mills’ pricing decisions as factors.
- Who
- The Indian government, sugar mills, industry bodies, dealers, bulk consumers, retailers and shoppers are involved; Food Secretary Sanjeev Chopra provided the government’s explanation.
- What
- Retail and wholesale sugar prices rose again despite government measures intended to increase supply and curb speculation and hoarding.
- Where
- Across India’s retail and wholesale markets, based on Department of Consumer Affairs price data.
- When
- The latest reported average retail price was Rs 65.05 per kg on August 26, following Rs 63.97 per kg on August 25.
- Why
- The report cited increased festive demand and earlier mill price increases; the government said the rise was not supported by supply fundamentals because sugar stocks were ample.
Government and Industry View
Retail-Market Impact
Cause of the increase
Government and Industry View
Food Secretary Sanjeev Chopra said mills had raised ex-mill prices and that the increase was not rooted in supply fundamentals because India had ample stocks. The government also cited action against speculation and hoarding.
Retail-Market Impact
The latest report attributed the second consecutive retail increase partly to an uptick in festive demand, while retail prices continued to burden poor and middle-class consumers.
Effect of government action
Government and Industry View
The government and sugar industry bodies said ex-mill prices had fallen 18% to Rs 55 per kg after imports and other measures, and that prices would decline further.
Retail-Market Impact
Retail and wholesale prices continued rising, indicating that the reported fall in ex-mill prices had not yet reached shoppers.
Supply outlook
Government and Industry View
ISMA projected 279 lakh tonnes of net production, 50 lakh tonnes of opening stock and domestic demand of 280-285 lakh tonnes; it also projected closing stocks of 35 lakh tonnes.
Retail-Market Impact
Despite these supply projections and government measures, consumers were still facing substantially higher retail prices.
Key facts
- Latest average retail price
- Rs 65.05 per kg on August 26.
- Monthly change
- The August 26 average was 34% above Rs 48.68 per kg a month earlier.
- Annual change
- The August 26 average was 41% above Rs 46.27 per kg a year earlier.
- Maximum and modal prices
- The maximum selling price was Rs 76 per kg and the modal rate was Rs 65 per kg.
- Wholesale price
- The average wholesale price rose to Rs 60.36 per kg on August 26, compared with Rs 45.34 a month earlier and Rs 43.02 a year earlier.
- Government measures
- The Centre allowed imports of 10 lakh tonnes of raw sugar by October 31, imposed stock limits and kept exports banned.
- Supply projection
- ISMA estimated net 2025-26 production at 279 lakh tonnes, opening stocks at 50 lakh tonnes and domestic demand at 280-285 lakh tonnes.
Quotes
Sanjeev Chopra
Food Secretary of India
“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.”
thehansindia.com
theprint.in
Sources
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