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Wholesale sugar prices have fallen by nearly Rs 800 per quintal in the last three days and the rate is now around Rs 62 per kg.
The government has said that around 36 lakh tonnes of sugar stocks are currently available.
Wholesale sugar prices have declined by around 15% over the past few days following the Centre’s decision to allow duty-free imports of 10 lakh tonnes of raw sugar and its crackdown on hoarding and stock manipulation. However, retail prices remain elevated at around Rs 75 per kg, with consumers yet to see the full benefit of the fall in wholesale rates.
According to a report by The Times of Indiawholesale sugar prices have fallen by nearly Rs 800 per quintal in the last three days. The wholesale rate is now around Rs 62 per kg and could decline by another Rs 3 per kg in the coming days, industry and market participants said.
The Centre has said that around 36 lakh tonnes of sugar stocks are currently available. The government expects the existing stocks, together with the proposed imports, to ensure adequate supplies until fresh sugar enters the market with the beginning of the new crushing season.
“Factory prices have fallen by about Rs 800 per quintal in the last three days,” a Kolhapur-based trader was quoted as saying by The Times of India. The trader added that prices could soften further in the coming days.
Why Sugar Prices Are Falling
The recent decline follows the government’s decision to permit duty-free imports of 10 lakh tonnes of raw sugar. The move was aimed at improving domestic availability and preventing prices from rising further.
The government has also stepped up monitoring of sugar stocks and warned against hoarding and manipulation. It has said the available stock, along with the additional imports, should be sufficient to meet demand until the next sugar season begins.
The Sugar industry’s apex body, the Indian Sugar & Bio-energy Manufacturers Association (ISMA), has also argued that there is no actual shortage of sugar in the country.
ISMA said the recent spike in prices was “not natural” and was driven by stocking by bulk consumers as well as speculative behaviour. The industry body has called for a rationalisation of retail prices and expects prices to decline in the coming days following the government’s measures.
ISMA has also rejected claims that diversion of sugar towards ethanol production was responsible for the tight supply and higher prices. It said only around 290 crore litres out of an estimated 1,200 crore litres of ethanol produced from sugarcane during the October 2025-September 2026 ethanol supply year was linked to sugarcane.
Retail Prices Still High
Despite the sharp correction in wholesale prices, retail sugar prices have remained around Rs 75 per kg. Traders said retailers are still selling older inventory that was purchased at higher prices. Once this stock is exhausted and cheaper sugar becomes available, the decline in wholesale prices could gradually be passed on to consumers.
“If consumers now think twice before buying three or five kg of sugar, many are buying only half or one kg, hoping prices will fall,” the TOI report quoted a trader as saying.
Meanwhile, the Swabhimani Shetkari Sanghatana has demanded that sugar mills pay farmers an additional Rs 300 per tonne of sugarcane crushed during the 2025-26 season.
The farmers’ organisation has argued that growers should receive a share of the gains from the recent surge in sugar prices.
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August 25, 2026, 09:07 IST
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