New Delhi: As the festive season approaches, households across the country are facing a bitter reality in their kitchen budgets. Driven by robust festive demand, the average retail price of sugar in India has breached the ₹65 per kg mark, increasing by over ₹1 per kg in just a single day.
According to official government data, the average retail price of sugar stood at ₹65.05 per kg on Wednesday, August 26, up from ₹63.97 the previous day. This marks a staggering 34% increase from ₹48.68 per kg recorded just a month ago, and a 41% surge compared to ₹46.27 per kg during the same period last year. Notably, the maximum retail price recorded on Wednesday hit a peak of ₹76 per kg, while the most common (modal) price hovered around ₹65.
This retail price inflation persists despite recent government interventions aimed at cooling the market. To ensure adequate domestic supply and curb hoarding, the Centre permitted the import of 10 lakh tonnes of raw sugar up to October 31. Additionally, stock limits have been imposed on dealers and large-scale bulk consumers, such as beverage manufacturers, and a ban on sugar exports is already actively in place.
These measures successfully brought down ex-mill (mill-gate) prices by approximately 20%. Food Secretary Sanjeev Chopra confirmed earlier this week that mill-gate prices, which had artificially spiked to a record ₹67 per kg last week, have since dropped to ₹55 per kg following the crackdown on speculation and hoarding. Chopra emphasized that the initial price hike was not driven by market fundamentals, as the country holds sufficient sugar stocks.
However, both the government and sugar industry bodies acknowledge that the sharp decline in wholesale and mill-gate prices has not yet translated into relief for retail consumers.
Looking at the broader supply picture, the Indian Sugar and Bio-energy Manufacturers Association (ISMA) estimates total sugar production for the 2025-26 marketing year (ending in September) at around 279 lakh tonnes, post-diversion for ethanol. With an opening stock of 50 lakh tonnes, the total availability is well-equipped to meet the estimated domestic demand of 280-285 lakh tonnes. ISMA projects that the marketing year will close with a comfortable surplus stock of approximately 35 lakh tonnes.
Despite these reassuring macro-economic figures, until the reduced wholesale rates reflect at the retail level, the common consumer will continue to feel the pinch of inflated sugar prices during the peak festive purchasing season.