Sugar gets sweeter again: Retail prices fall 3.85% to Rs 62.57/kg in a week
Sugar prices have started to fall across markets following government interventions. The average retail price has dropped significantly over the past week. However, consumers still pay more than a month ago due to existing stock. Wholesale rates are not immediately reflecting in retail prices as traders hold old inventory. Government measures like import allowances and stock curbs aim to stabilize prices.
Sugar prices have begun to ease across markets after a series of government interventions aimed at containing the recent rise. The average all-India retail price fell 3.85% over the past week to Rs 62.57 per kg, while the average wholesale price dropped to Rs 57.62 per kg on September 2. The retail price had stood at Rs 65.08 per kg a week earlier, according to official data. Despite the weekly decline, consumers are still paying significantly more than they were a month ago, when the average retail price was Rs 49.33 per kg.
The current price is 27 per cent higher than that level.At the wholesale level, the decline has been sharper. The average price fell from Rs 60.39 per kg a week ago to Rs 57.62 per kg on September 2, according to data maintained by the consumer affairs ministry.Why the fall is taking time to reach consumersThe lower wholesale rates are not immediately translating into cheaper sugar at retail outlets because traders are still carrying stocks purchased when prices were higher.Sources said retailers are unwilling to sell this inventory at a loss and are therefore likely to maintain the earlier prices until their existing stocks are exhausted.
Only after they replenish their supplies at the lower wholesale rates will the reduction begin to show up in retail prices.A typical retailer holds 10-15 bags of sugar, with each bag weighing 50 kg." It takes at least ten days to reflect changes in the retail price," an industry source said.Imports and stock curbs aimed at pricesThe recent price movement comes after the government introduced measures to check a sudden rise in sugar prices.
These included allowing imports of 10 lakh tonnes of sugar and tightening stockholding norms for bulk users and dealers.The Centre has attributed the price increase to mills "jacking up" prices and has maintained that sugar stocks in the country are adequate.However, the government's production estimate for the 2025-26 marketing year, which runs from October to September, has been lowered to 306 lakh tonnes from the earlier projection of 343 lakh tonnes.Against this, annual domestic sugar demand is estimated at around 280-285 lakh tonnes.Get the latest Business News and Live updates.
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