Mill-level and wholesale sugar prices in India firmed up on Wednesday as factories in Uttar Pradesh have been reluctant to cut the rates despite various measures taken by the Centre.On Wednesday, ex-mill prices were quoted between ₹4,900-5,100 a quintal, with some mills in Maharashtra and Gujarat hiking beyond ₹5,000 for the first time in two weeks. Prices are up over 2 per cent since the beginning of this week.Industry sources said most mills in Uttar Pradesh are privately owned, while those in Maharashtra fall under the co-operative sector. “While mills in Maharashtra eagerly lowered the prices after the government’s initiatives, Uttar Pradesh mills were reluctant to lower below ₹4,900,” said a trade source, who did not wish to be identified.Hand-to-mouthThe government’s initiative of cutting stock limits seems to have backfired. However, trade sources said most traders did not buy stocks as they expected prices to drop further. This resulted in a hand-to-mouth situation and two continuous festivals — Krishna Jayanthi and Ganesh Chathurthi — within 10 days complicated the situation further. With traders running out of stock and festival demand picking up, mills took advantage of the situation this week to push up prices. In particular, mills in Maharashtra increased prices. In addition, the problem of non-availability of trucks compounded the situation. Usually, prices quoted by Maharashtra mills tend to be ₹200 a quintal lower than Uttar Pradesh units. This is because Maharashtra factories enjoy a logistics advantage.Change in sales quota“But last weekend, Maharashtra sugar mill prices were over ₹600 lower than Uttar Pradesh rates. With Uttar Pradesh factories holding on to their rates, Maharashtra units automatically jacked their offer prices,” said an industry source.Trade sources said on Tuesday (September 8), Maharashtra mills raised their prices by ₹600-700 a quintal, once they cleared their sales quota for the first week of this month.After retail prices soared above ₹70 a kg, the Food Ministry changed the monthly sale quota system to fortnightly. Per the new norms, mills have to sell 40 per cent of the allocated quota in the first week and the rest in the second. In addition, the Centre on August 20 allowed duty-free import of raw sugar until October 31. Besides, it has allowed sugar meant for exports to be redirected to the domestic market.Global rates firm upOn Wednesday, Shree Renuka Sugars Managing Director and Chief Executive Sushee Kumar told reporters on the sidelines of a seminar organised by the Indian Sugar and Bio-Energy Manufacturers Association (ISMA) that his company would redirect to the domestic market 2.5 lakh tonnes of sugar meant for exports under the advance licensing scheme.This is expected to put further pressure on the mills to lower prices.“The other issue is that global raw sugar prices are ruling above 18 US cents a pound. London white sugar is over $525. So, mills are trying to price the commodity around the landed price of imported sugar,” the industry source said.The trade source said mills in Uttar Pradesh could have kept rates firm as the State government came forward to sell sugar at ₹50-52 a kg. On Wednesday, raw sugar on InterContinental Exchange for October delivery quoted at 18.21 cents a pound ($405/tonne). For cash, it was available at 18.08 cents. In London, white sugar October contracts ruled at $528.30 a tonne.Wholesale rates gainIn the domestic market, wholesale prices of sugar increased by ₹150-350 a quintal, with rates in Mumbai surging by ₹250 and ₹350 in Hyderabad. The All-India average retail price, though, dropped to ₹60.31 a kg from ₹60.53, though the commodity ranged between ₹83 and ₹44 in many parts. Besides permitting duty-free import of raw sugar and changing the sales quota to fortnightly basis, the Centre has cut the stock limit for traders and bulk buyers.Sugar prices have surged since July on a lower-than-estimated crop, which was affected by unseasonal rain and crop diseases, particularly in Uttar Pradesh.Published on September 9, 2026