Retail sugar prices have declined below ₹60 a kilogram in Kolkata and Mumbai, while wholesale rates dropped by ₹100 to ₹400 a quintal on Friday. Data compiled from the Price Monitoring Division of the Department of Consumer Affairs indicated that the average all-India retail prices dropped to ₹64.10 a kg from ₹64.33 on Thursday.
Among major metropolitan cities, retail prices were recorded at ₹58 a kg in Mumbai and ₹59 a kg in Kolkata. In other cities such as Delhi and Chennai, rates dropped by ₹2 a kg, settling at ₹60 and ₹62 a kg respectively.
Mill-gate prices dropped to below ₹4,750 a quintal. Industry sources noted that Latur-based Manjra Sugar Industries’ Kancheswar unit in Maharashtra sold 430 tonnes of S-30 grade sugar ranging from ₹4,788 to ₹4,801 a quintal. Additionally, Jamkhandi Sugars offered the commodity at ₹5,000 a quintal, with other market offers ranging between ₹4,725 and ₹5,480 a quintal.
According to industry sources, mills have been asking buyers to lift existing stocks before August 31, which has contributed to currently low demand in the market.
Trade sources reported that market rumours have pegged the sugar sale allocation for September at 21 to 22.5 lakh tonnes. A trade source commented that since September is a festival month, this allocation level may not be sufficient to meet demand. Two major festivals, Krishna Janmashtami and Ganesh Chaturthi, fall within the first fortnight of September.
Sugar prices overall have declined by over 20 per cent in the past week. This downward movement was primarily triggered by the government's move on August 20 to allow duty-free imports of 1 million tonnes of raw sugar.
The central government has also implemented several other measures to check the recent price surge. These steps include carrying out inspections on traders’ premises across different states to check hoarding, monitoring physical stocks held with mills, and cutting the stock limit for bulk buyers who purchase over 10 tonnes a month to 15 days of their requirements.
Despite the domestic price correction, global sugar prices edged higher. October raw sugar futures on the InterContinental Exchange in New York edged towards 18 cents a pound, resting at 17.97 cents a pound, while spot prices increased to 18.22 cents. In London, white sugar rose to $522.10 a tonne.
"The recent moderation in retail and wholesale sugar prices demonstrates how targeted government interventions, such as duty-free imports and strict stock limits, can effectively cool commodity markets. For businesses and bulk buyers, this correction offers temporary relief ahead of the high-demand festival season in September. However, industry stakeholders must carefully navigate potential supply-demand mismatches if allocation limits remain tight during upcoming festivities, while keeping a close eye on rising global price trends." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
