Sugar Prices Remain Above ₹60/kg as Retail Rates Rise Despite Supply Measures

Sugar prices continue to haunt consumers with retail rates prevailing over ₹60 per kg in most markets. As per Consumer Affairs Ministry Data, as on 30 August the average price in India is at ₹64.24/kg. 

That is higher than ₹63.12 a week ago. Average price went up about 30% in just a month, and year-on-year growth is already at 38.63%. 

Retail Market Still Firm 

The price difference between cities is fairly wide.In the whole country, sugar was sold at ₹62 per kg in Delhi but it was being consumed at as high a rate as the same type of sugar for which people living in Mumbai were paying ₹66. Ranchi at ₹68 and Chennai at ₹63. 

For the broader range, it was wider yet, with the highest reported retail price at ₹74 per kg and the lowest at ₹40. 

The same pattern has replicated with wholesale prices. Average price touched ₹59.73 a kilo as against ₹58.66 a week ago. The wholesale rates are currently 31% higher than a month ago and are also running at 38.63% above last year's levels. 

Mill Prices Tell a Different Story 

Interestingly, prices at the ex-mill level have moved lower. They have fallen nearly 20% after the government allowed duty-free imports of 10 lakh tonnes of raw sugar. 

Industry sources said some difference between the two levels is normal. A gap of around ₹2-3 per kg between ex-mill and wholesale prices, and ₹7-8 per kg between ex-mill and retail prices, is considered typical. 

Lower Production Estimate Adds to the Picture 

The 2025-26 sugar production estimate has been reduced to 306 lakh tonnes, from the earlier 343 lakh tonnes. Annual domestic demand is estimated at around 280-285 lakh tonnes. 

The Centre has said sugar stocks are adequate, while measures have also been taken to improve availability. Whether the recent fall in ex-mill prices reaches consumers remains to be seen. 

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Conclusion 

For now, sugar remains expensive at the retail counter despite the decline in ex-mill rates. The gap between the two levels will remain an important factor for the market in the near term. 

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