Sugar production during the current season (October 2026-September 2027) is expected to be around 306 lt, including diversion for ethanol, compared to the initial estimate of around 343 lt.
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Prices of sugar sold by mills through tenders dropped by ₹500 a quintal on Saturday, but retail rates hit another high of ₹60.26 a kg.According to trade sources, Solapur-based Loknete Baburao Patil Agro Industries Ltd in Maharashtra sold S-30-grade sugar at ₹5,850 per quintal. “The company sold 70 tonnes. Apart from this, whoever wanted to buy, the mill offered it at the same rate,” said a trading source. In another tender, prices for S-30 dropped to ₹6,100 a quintal from ₹6,600 on Friday, while rates for M-30 grade slipped to ₹6,225 from ₹6,725.However, retail prices surged by over ₹2 a kg on Saturday from ₹58.23 on Friday, data from the Price Monitoring Division of the Department of Consumer Affairs showed.Price hike ‘unjustified’“Retail prices will begin to reflect the decline in tender prices, most probably, from Monday,” said the source.Meanwhile, Food Secretary Sanjeev Chopra told a private television channel that the recent rise in sugar prices has not been driven by market fundamentals. “Domestic sugar availability and stocks are ample and adequate,” he said. Terming the surge in sugar prices as “unjustified”, Chopra said ex-mill prices had increased from ₹48 to ₹62 per kg within a short period. “It is unacceptable and artificially created by speculation, hoarding and profiteering,” he said. He said ending stocks would be a comfortable 33-35 lakh tonnes (lt), while early crushing starting around October 15 will add 10–12 lakh tonnes to “easily meet festive season demand”, said the Food Secretary. Duty-free raw importsSugar prices have soared to new highs, rising by over 35 per cent since June, on fears that supplies may not meet the domestic demand till October, particularly due to the festival season. However, in an effort to combat rising sugar prices, the Centre has permitted duty-free import of 1 million tonnes of raw sugar. In addition, it has stipulated that bulk users, who consume over 10 tonnes of sugar a month, cannot hold more than 15 days’ stock from September 1.Sugar production during the current season (October 2026-September 2027) is expected to be around 306 lt, including diversion for ethanol, compared to the initial estimate of around 343 lt. Besides, 8 lakh tonnes of sugar have been exported before the Centre imposed a ban.Published on August 22, 2026
