Retail, wholesale and mill-level sugar prices in India declined on Monday, pressured by various government policies, including the decision to import 1 million tonnes (mt) of raw sugar duty-free and a higher sales quota for September 1-15, trade sources said. “The thumb rule of retailers is that they sell sugar at a reasonable margin until the current stocks, bought at higher prices, last. Therefore, the current mill-level prices, which have dropped over 25 per cent, have not been reflected in retail outlets,” said a sugar industry source. With the Centre allocating 13 lakh tonnes (lt) of sugar for the first fortnight of September, under the newly changed quota release system, the sugar market faces a crucial test, said Dilip Patil, Managing Director of Samarth SSK Ltd and Co-Chairperson of the Sugar Bioenergy Forum (SBF) under the Indian Federation of Green Energy. More supplies“About 3 lt of sugar meant for exports are being redirected in the domestic market, apart from the quota. This will lead to additional supply and put further pressure on the market,” he told businessline.On Monday, the all-India average retail sugar price dropped to ₹63.28 a kg from ₹64.23 on Sunday. On Saturday, the retail price was ₹63.88. Prices in major cities such as Delhi, Chennai and Kolkata are still around ₹60 a kg.Wholesale sugar prices dropped between ₹50 and ₹200 a quintal, with rates in Mumbai falling below ₹5,400 a quintal.Awaiting quotaNot many mills came forward with sale offers on Monday as they were waiting for the September factory-wise quota release order, said sources.However, prices dropped to ₹4,500 a quintal for S-30 grade sugar. A couple of mills’ offer prices were ₹4,775-4,900. M-30 grade sugar was offered between ₹4,600 and ₹5,000 a quintal.Patil said detailed instructions on the new fortnightly quota system should clarify how it will operate—whether the prescribed quantity is to be considered in terms of sale, invoice, lifting or physical dispatch. It should also clarify what happens to sugar that is sold but not lifted within the stipulated period.Global rates downAs part of its efforts to control sugar prices, which soared over ₹70 a kg in the third week of August, the Centre changed its monthly sale quota allocation to fortnightly from monthly, besides permitting duty-free import of raw sugar until October 31. It has stipulated that 40 per cent of the allocation will have to be sold in the first week and the rest in the second week.Besides, the government has carried out inspections on traders’ premises in different States to check hoarding, monitored physical stocks with mills and cut the stock limit for bulk buyers (who purchase over 10 tonnes a month) to 15 days of their requirements.Global sugar prices, however, ruled lower on Monday. October raw sugar futures on InterContinental Exchange, New York, were quoted at 17.69 cents a pound, while spot prices increased to 17.56 cents. In London, white sugar rose to $514.40 a tonne.Published on August 31, 2026