Mill gate sugar prices dropped further on Tuesday, but the all-India average retail rates soared to a new high of ₹63.97 a kg. Industry sources said retail prices will begin to reflect the mill gate prices in a couple of days and drop below ₹60 a kg.Ex-mill or mill gate prices on Tuesday were between ₹5,400 and ₹5,500 a quintal for S-grade sugar compared with ₹5,500-5,700 on Monday. M-grade sugar rates dipped to ₹5,500-5,600 against ₹5,700-6,100 on Monday. “There are few takers even at this rate,” said an industry source, who did not wish to be identified.Hike in non-sugar producersAccording to the Price Monitoring Division of the Department of Consumer Affairs, the new all-India average high price of ₹63.97 was against ₹63.05 on Monday. However, wholesale prices across cities dropped by ₹300 a quintal.“Retail prices are high in non-sugar producing States. With prices dropping ex-mill, they will drop below ₹60 in a couple of days,” said the source.Retail prices in major metros declined on Tuesday, with the rates in Chennai slipping to ₹67 and in Mumbai and Delhi to ₹62 a kg. Rates dropped by ₹2-3 a kg on Tuesday. The Government’s move to allow the duty-free import of 1 million tonnes of raw sugar has primarily dragged prices lower. Besides, various measures taken by the government, including cracking down on traders in different States to check hoarding, monitoring physical stocks with mills and cutting the stock limit for bulk buyers (who purchase over 10 tonnes a month) to 15 days of their requirements have put pressure on rising prices.Behind ‘abnormal surge’On Tuesday, global sugar prices, however, edged higher. October raw sugar futures on InterContinental Exchange, New York, rose to 17.44 cents a pound, while spot prices were 17.66 cents. In London, white sugar dropped to $525.50 a tonne from $534.80.Industry sources said the “abnormal” surge in sugar prices began with a mill in Karnataka fixing ₹6,000 a quintal first. Soon, other mills began to follow suit within and outside the State.This resulted in sugar prices soaring across the country, the sources said, adding that some traders too built stock and took advantage of the situation.Published on August 25, 2026