Sugar Prices Stay Above ₹60 per Kg in India Despite Government Intervention

Retail sugar prices across India have remained elevated above ₹60 per kilogram in most markets, despite a sequence of government interventions aimed at controlling domestic rates, according to data released by the Consumer Affairs Ministry.

What Happened

Official records from the Consumer Affairs Ministry showed that the all-India average retail price for sugar reached ₹64.24 per kg on Sunday, marking a 1.77 per cent increase from ₹63.12 per kg recorded a week earlier. Over longer periods, this price reflects a 30 per cent surge compared to a month ago and a 38.63 per cent rise relative to the corresponding timeframe last year. Across the country, retail prices ranged between a minimum of ₹40 per kg and a maximum of ₹74 per kg as of August 30.

City-level tracking highlighted the variation across major urban centers, with retail sugar selling at ₹62 per kg in Delhi, ₹63 per kg in Chennai, ₹66 per kg in Mumbai, and ₹68 per kg in Ranchi. Meanwhile, wholesale rates also stayed firm, averaging ₹59.73 per kg—up from ₹58.66 per kg the previous week—reflecting a 31 per cent month-on-month jump and a 38.63 per cent year-on-year increase.

Key Highlights

• The all-India average retail price stood at ₹64.24 per kg, rising 1.77 per cent week-on-week, 30 per cent month-on-month, and 38.63 per cent year-on-year.
• Wholesale sugar prices averaged ₹59.73 per kg, up 31 per cent over the past month.
• Ex-mill rates dropped by nearly 20 per cent after the government permitted duty-free imports of 10 lakh tonnes of raw sugar.
• Industry sources noted that normal price differentials are ₹2 to ₹3 per kg between ex-mill and wholesale, and ₹7 to ₹8 per kg between ex-mill and retail.
• The central government has enforced stockholding limits on bulk consumers and dealers, and previously instituted a ban on sugar exports.
• Production for the October–September 2025–26 marketing year is estimated at 306 lakh tonnes against earlier projections of 343 lakh tonnes, while domestic demand is pegged at 280 to 285 lakh tonnes.

Why This Matters

The persistence of high retail and wholesale rates stands in contrast to domestic ex-mill trends, which dropped by almost 20 per cent following the clearance of 10 lakh tonnes of duty-free raw sugar imports. Industry benchmarks cited by market sources typically place the gap between ex-mill and wholesale rates at ₹2 to ₹3 per kg, and the gap to retail at ₹7 to ₹8 per kg.

The central administration has maintained that India possesses adequate sugar supplies to fulfill consumption needs, directly accusing sugar mills of intentionally increasing prices. Even with revised downward production estimates of 306 lakh tonnes for the 2025–26 marketing year—down from an initial estimate of 343 lakh tonnes—projected output remains higher than the nationwide annual consumption demand of 280 to 285 lakh tonnes.

What to Watch Next

Market attention remains focused on the impact of tightened stockholding norms for dealers and bulk industrial users, alongside the physical arrival and distribution of the 10 lakh tonnes of duty-free raw sugar imports intended to ease domestic supply pressures.

Frequently Asked Questions

What is the current average retail price of sugar in India?

According to Consumer Affairs Ministry data, the all-India average retail price was ₹64.24 per kg on Sunday, with prices across individual markets ranging from ₹40 to ₹74 per kg.

What steps has the government taken to check sugar prices?

The central government has permitted the import of 10 lakh tonnes of raw sugar free of duty, placed tighter stockholding restrictions on bulk users and trade dealers, and earlier imposed a ban on outbound sugar exports.

How does projected sugar production compare to domestic demand?

Sugar production for the 2025–26 marketing season is currently estimated at 306 lakh tonnes, which exceeds the country’s annual domestic demand estimated at 280 to 285 lakh tonnes.

Source: Reporting based on data from the Consumer Affairs Ministry via The Hindu BusinessLine.