Ex-mill and tender prices (in Maharashtra) of sugar have declined by over 10 per cent since hitting a peak of ₹6,500 a quintal on Thursday (August 20
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Sugar prices declined in mills’ sales for open markets and retail outlets on Monday after nearly a two-month rally, following various measures taken by the Indian government.“Ex-mill and tender prices (in Maharashtra) of sugar have declined by over 10 per cent since hitting a peak of ₹6,500 a quintal on Thursday (August 20). On Monday, the prices quoted were between ₹5,500 and ₹5,700 a quintal for S-30 grade,” said an industry source, who did not wish to be quoted. No takersM-30 grade sugar prices have dropped to below ₹6,100 from ₹6,950 during the same period. “There are no buyers in view of the falling prices and other measures taken by the Government,” the source said.Industry sources said the Government was cracking down on sugar traders in different States to check hoarding. Besides, physical stocks with mills are being monitored, keeping the sector on its toes. Retail prices of sugar dropped a tad to ₹63.05 a kg from a record high of ₹63.12 on Sunday, data from the Price Monitoring Division of the Department of Consumer Affairs showed. In cities such as Chennai, Delhi, Mumbai, Kolkata and Hyderabad, prices declined by at least ₹3 a kg on Monday.Duty-free importsSources said prices in Pune dropped nearly 20 per cent to ₹60 a kg during the weekend, down from ₹72 last week. Sugar prices began dropping from August 21, after the government permitted duty-free imports of 1 million tonnes of raw sugar. The import window will be open till October 31. At least 4 lakh tonnes are on their way, while industry sources said more sugar could land by October 15 in time to meet festival demand. BApart from permitting duty-free import of raw sugar, the government has cut the stock limit for bulk users, who buy more than 10 tonnes a month, to 15 days of their monthly demand. This will come into force on September 1.New norms’ pressureThe Ministry of Food also asked all mills to furnish details of the sugar sold by them on August 17, 18 and 19. This move has put additional pressure on mills and other users. The new stock-holding norm has put pressure on bulk users to offload excess inventories in the open market. Sugar prices soared to new highs, rising by over 35 per cent since June, on fears that supplies may not meet domestic demand till October, particularly due to the festival season. 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. Global sugar prices, too, dropped after the government announced the import of raw sugar. October raw sugar futures, which surged to 18.26 cents a pound soon after the announcement, were down at 17.16 cents at 1730 hours IST. Raw sugar for cash was quoted at 17.6 cents. In London, white sugar dropped to $534.80 a tonne from $558 on Thursday. Centre’s denialThe Centre has denied that sugar prices have surged due to diversion for ethanol. “The share of sugar diverted for ethanol has declined from around 12 per cent in 2022-23 to around 9 per cent in 2025-26. Moreover, nearly three-fourths of the ethanol produced in the country now comes from grains, particularly maize,” the government said in a statement. Another problem with supply and demand has been permitting exports. The government allowed 20 lakh tonnes of sugar for exports, but after 8 lakh tonnes were shipped, it barred shipments.Published on August 24, 2026
