Now Reading: Mill gate sugar prices drop, retail rates at new high of Rs 63.97
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Mill gate sugar prices drop, retail rates at new high of Rs 63.97
Mill gate sugar prices dropped further on Tuesday, with S-grade sugar falling to Rs 5,200-5,260 a quintal and M-grade to Rs 5,400-5,600. However, the all-India average retail price rose to a new high of Rs 63.97 a kg, up from Rs 63.05 on Monday, according to the Price Monitoring Division of the Department of Consumer Affairs.
Industry sources told The Hindu BusinessLine that retail prices should reflect mill gate rates in a couple of days and drop below Rs 60 a kg. The Indian Sugar and Bio-Energy Manufacturers Association (Isma) said at a press conference that there is no shortage of sugar and that retail prices will ease over the next 7-10 days. Isma attributed the recent price rise to speculative buying and lower production due to adverse weather, and said mills were not involved in creating artificial scarcity.
The government has allowed duty-free imports of 1 million tonnes of raw sugar and taken steps against hoarding. Isma expects October sugar production to jump to 1 million tonnes from the usual 0.4-0.5 million tonnes, as crushing is advanced to mid-October.
Indian Opinion Analysis
The Hindu BusinessLine leads with the retail price record and cites unnamed sources critical of mill pricing, including a trader who questions why no mill has been questioned for exceeding quotas. Rediff.com, reporting Isma's press conference, leads with the association's denial of scarcity and its forecast of easing prices. The BusinessLine frames the price surge as an 'abnormal' event driven by a Karnataka mill, while Isma blames speculators and weather. Both agree that government import and stock measures are working. The key divergence is on who caused the spike, the government's next data on retail and wholesale prices will test whether supply measures are sufficient.
Isma expects October production of 1 million tonnes, if output matches that figure and prices fall, the supply-side explanation holds. If retail prices stay high, the focus may shift to mill pricing behaviour.
Coverage: 2 sources, 2 neutral
Sources (2): thehindubusinessline.com (neutral report), rediff.com (neutral report)
This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry. Methodology and corrections.
Updated: this story now draws on 2 sources.
