Now Reading: Sugar prices rise over Rs 1/kg to Rs 65 amid festive demand
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Sugar prices rise over Rs 1/kg to Rs 65 amid festive demand
Sugar prices rose for a second consecutive day on Wednesday, with the all-India average retail price increasing by more than Rs 1 per kg to Rs 65.05 per kg, driven by higher…
Sugar prices rose for a second consecutive day on Wednesday, with the all-India average retail price increasing by more than Rs 1 per kg to Rs 65.05 per kg, driven by higher festive demand, according to government data. The modal retail price was Rs 65 per kg, while the maximum selling price touched Rs 76 per kg. Retail prices are 34% higher than a month ago and 41% above last year's level.
Ex-mill prices have fallen nearly 20% to Rs 55 per kg after the government allowed imports of 10 lakh tonnes of raw sugar and took steps to curb hoarding and speculation. However, the decline has not yet translated into lower retail prices. Wholesale sugar prices also rose marginally to Rs 60.36 per kg. The government has banned sugar exports and imposed stock limits on dealers and bulk consumers to control prices.
The Indian Sugar and Bio-Energy Manufacturers Association projects net sugar production for the 2025-26 marketing year at around 279 lakh tonnes, with domestic demand estimated at 280-285 lakh tonnes. Opening stocks stood at 50 lakh tonnes, and closing stocks are projected at around 35 lakh tonnes by end-September.
Indian Opinion Analysis
The gap between falling ex-mill and rising retail sugar prices highlights a persistent supply chain friction that typically benefits middlemen and large stockists. Under the Essential Commodities Act, state governments have the power to impose stock limits and conduct raids against hoarding, but enforcement varies widely. With the festival season peaking in coming weeks, demand will remain high, and the government's import window closing on October 31 will be a key pressure point. If retail prices do not cool soon, the Centre may need to extend the import period or release additional buffer stocks from the Food Corporation of India's sugar reserves, a move last used in 2016.
Source: economictimes.indiatimes.com
This brief was synthesised by AI from the source linked above.
