After the government allowed the import of sugar, the price has fallen by 18% to ₹55 per kg. These are ex-mill i.e. factory prices. Last week, sugar prices had reached an all-time high of ₹67 per kg. Import permission and strict action on hoarding reduced prices Union Food Secretary Sanjeev Chopra told PTI that the government has taken several important steps to control sugar prices. Recently the Central Government had given permission to import 10 lakh tonnes of raw sugar. Additionally, stock limits have been imposed on large buyers and states have been directed to prevent hoarding. After these decisions, prices have started falling at the mill level. There will be relief soon in retail and wholesale markets also. According to Prakash Naiknavare, generally there is a difference of ₹ 2 to ₹ 3 per kg between the ex-mill rate and the wholesale market price. At the same time, there is a difference of ₹7 to ₹8 per kg between ex-mill and retail market rates. At present, customers have not got complete relief in the retail market. According to Consumer Affairs Ministry data, on August 24, the average wholesale price of sugar across the country was recorded at ₹58.29 per kg and the average retail price at ₹63.05 per kg. However, after the reduction in mill level prices, sugar will soon become cheaper for common consumers at retail shops. Flying squads deployed across the country, crackdown on hoarders, Managing Director of National Federation of Cooperative Sugar Factories (NFCSF) Prakash Naiknavare said that ex-mill prices across the country have fallen below Rs 55 per kg. To prevent black marketing and hoarding in the market, ‘Flying Squads’ have been deployed, which are continuously inspecting. Due to government strictness, prices may fall further in the coming days. Restriction on keeping stock more than 15 days: The government has imposed a limit on keeping stock on sugar traders and dealers. Under the new rules, dealers dealing in more than 10 metric tons of sugar in a month cannot store stock for more than 15 days of consumption. Apart from this, three more steps have been taken… Adequate stock of sugar in the country, claim of shortage is wrong. According to the Food Ministry, the production of sugar in the country for the marketing year 2025-26 (October-September) is estimated to be around 306 lakh tonnes. Although this figure is less than the initial estimate of 343 lakh tonnes, the country’s annual domestic demand remains only around 280 to 285 lakh tonnes. In such a situation, the country has sufficient buffer stock of sugar available to meet the demand. Knowledge Part: What is the ex-mil rate? This is the price at which sugar mills sell sugar to traders or wholesalers. This does not include transportation, local taxes and retailer profits. When the ex-mill rate falls, after a gap of a few days the prices in the retail market also come down.
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Sugar prices fall 18% from record high: ex-factory sugar prices hit ₹55/kg; Will soon become cheaper in retail market also
