Punjab Newsline | New Delhi

In a major relief for consumers and sugar traders, sugar prices at the mill level have fallen sharply by nearly 30 per cent within a matter of days following a series of measures and increased government monitoring.

Sugar, which was selling at a record-high mill price of around ₹67 per kg on August 18, has now declined to nearly ₹47 per kg. The steep fall has already begun reflecting in wholesale markets, although consumers may have to wait before the benefit reaches retail shops.

Market experts estimate that it could take at least 10 days for the decline to be reflected significantly in retail prices. Retailers are still holding stocks purchased at higher rates. A typical retailer may have 10 to 15 bags of 50 kg each in stock, and traders are unlikely to reduce prices substantially until the existing inventory is cleared and replaced with cheaper supplies.

Government moves to boost domestic supply

To cool sugar prices, the government has allowed refined sugar originally prepared for export to be sold in the domestic market. The move is expected to bring an additional 3 to 3.5 lakh tonnes of refined sugar into the domestic market over the next two months, potentially strengthening supplies and putting further downward pressure on prices.

The government has also tightened stockholding norms from September 1. Wholesale consumers using more than 10 tonnes of sugar per month, including sweet manufacturers and food companies, will reportedly not be permitted to hold stocks for more than 15 days.

Adequate stocks despite lower production estimate

Market reports indicate that the sugar production estimate for the 2025-26 marketing year has been revised downward to around 306 lakh tonnes from the earlier projection of 343 lakh tonnes.

Despite the lower production estimate, the government maintains that sugar availability remains adequate, given India's annual domestic demand of around 280-285 lakh tonnes.

With the gap between ex-mill, wholesale and retail prices gradually narrowing, consumers could see a more significant reduction in sugar prices in the coming days as cheaper stocks begin reaching retail markets.