Ex-mill prices of sugar had shot up to a record Rs 67 per kg last week – a spike Chopra attributed to mills “jacking up” rates.
“Ex-mill price of sugar, which were jacked up by mills, have started cooling down. They have declined to Rs 55 per kg and will further drop in the coming days,” Chopra told PTI.
The jump in prices, he said, was not rooted in fundamentals, as the country has ample sugar stocks despite production for the 2025-26 marketing year (October-September) falling to 306 lakh tonnes, down from earlier estimates of 343 lakh tonnes. Annual domestic demand stands at around 280-285 lakh tonnes.
Last week, the government allowed import of 1 million tonnes of raw sugar, imposed stock limits on bulk consumers, and directed states to intensify inspections to check hoarding and speculation.
National Federation of Cooperative Sugar Factories (NFCSF) Managing Director Prakash Naiknavare said no state in the country currently has ex-mill prices ruling above Rs 55 per kg.
Flying squads have been deployed nationwide to check hoarding, and the Centre’s intervention has helped arrest the price rise, he said, adding that ex-mill prices are expected to fall further.Naiknavare noted that there is typically a Rs 2-3 per kg gap between ex-mill and wholesale prices, and a Rs 7-8 per kg gap between ex-mill and retail prices.
However, the decline in ex-mill prices is yet to filter down to wholesale and retail markets.
The average all-India wholesale price of sugar continues to rule high at Rs 58.29 per kg, while the average retail price stood at Rs 63.05 per kg on August 24, according to data maintained by the Consumer Affairs Ministry.