Sugar prices in wholesale markets across India have fallen sharply after government action against hoarding and duty-free import approvals, but retail rates remain sticky at Rs 61 to Rs 63 per kilogram in major cities. The gap between wholesale costs and consumer prices highlights the slow pass-through in the supply chain.
Wholesale Sugar Prices Drop Rs 1,550 in Mumbai, Rs 900 in Delhi
Mumbai saw the sharpest decline with sugar falling from Rs 6,750 per quintal on August 22 to Rs 5,200 per quintal on September 3. Delhi prices dropped from an all-time high of Rs 6,600 to Rs 5,700 per quintal on September 2.
Other Cities See Major Wholesale Declines
Kanpur wholesale sugar now stands at Rs 5,650 per quintal. Raipur, Ranchi and Kolkata are at Rs 5,400 per quintal. Guwahati quotes Rs 5,450, Hyderabad at Rs 5,300 and Chennai at Rs 5,900 per quintal. All rates include GST.
Retail Prices Remain Stuck at Rs 61 to Rs 63 Per Kg
On September 2, retail sugar in Mumbai and Guwahati was Rs 62 per kg. Ranchi, Delhi, Kanpur, Raipur, Kolkata and Hyderabad held at Rs 61 per kg. Chennai was highest at Rs 63 per kg. These rates were unchanged from September 1.
Government Actions Drive Wholesale Relief
Delhi sugar dropped Rs 7 in 12 days, Kanpur fell Rs 9, Raipur declined Rs 8 and Mumbai eased Rs 6. Ranchi sugar plunged from Rs 70 to Rs 61 per kg. Guwahati fell from Rs 71 to Rs 62 and Kolkata from Rs 70 to Rs 61 per kg. Hyderabad and Chennai had also touched Rs 70 on August 22.
Duty-Free Imports and Anti-Hoarding Steps Kick In
The government capped stock limits for bulk consumers and dealers. It also intensified action against hoarders hiding stocks. On August 21, New Delhi allowed duty-free import of 10 lakh metric tonnes of sugar. About 70,000 to 80,000 tonnes from exporting countries have already been shipped in 3-4 consignments. Another 3-4 lakh tonnes is being refined at Indian ports for market release.
Festival Season Demand to Be Met With Adequate Supply
The government aims to keep sufficient stock in the market during the festive season. If all measures work as expected, sugar prices could soften further in the coming weeks.
