Now Reading: Sugar mill gate prices drop, retail rates hit new high of Rs 63.97/kg
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Sugar mill gate prices drop, retail rates hit new high of Rs 63.97/kg
Mill gate sugar prices continued to fall on Tuesday, with S-grade slipping to Rs 5,200-5,260 per quintal and M-grade to Rs 5,400-5,600, but the all-India average retail price rose to a fresh…
Mill gate sugar prices continued to fall on Tuesday, with S-grade slipping to Rs 5,200-5,260 per quintal and M-grade to Rs 5,400-5,600, but the all-India average retail price rose to a fresh high of Rs 63.97 a kg, according to the Price Monitoring Division of the Department of Consumer Affairs. Industry sources said retail prices should reflect the mill gate drop in a few days and fall below Rs 60.
The government's decision to allow duty-free import of one million tonnes of raw sugar, along with anti-hoarding measures and stock limits on bulk buyers, has pulled mill gate prices lower. Retail rates in major metros declined on Tuesday, with Chennai at Rs 67 and Mumbai and Delhi at Rs 62 per kg. Industry sources attributed the earlier abnormal surge to a Karnataka mill that first fixed Rs 6,000 per quintal, with others following suit.
Indian Opinion Analysis
The gap between ex-mill and retail sugar prices, now at roughly Rs 8 per kg, shows that supply chain margins and local market dynamics, not just factory gate rates, determine what consumers pay. Non-sugar producing states, which rely on longer transport and multiple intermediaries, are where the stickiest retail prices are concentrated. Under the Sugar (Control) Order, 1966, the government can fix a uniform release quantity and levy a stockholding limit, which it has already tightened for bulk buyers. The key metric to watch is whether the retail all-India average falls below Rs 60 in the next week, as industry sources have predicted, which would confirm that the policy measures are transmitting to the consumer.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
