Sugar prices are cooling down after hitting a record Rs 67 per kg last week, with ex-mill rates now falling 18% to Rs 55 per kg.Food secretary Sanjeev Chopra attributed the drop to the government’s recent decision of allowing sugar imports and action against hoarding and speculation. Chopra said the earlier price rise was not because of a shortage of sugar, as the country has sufficient stock, rather it was due to mills “jacking up” prices.“Ex-mill price of sugar, which were jacked up by mills, have started cooling down. They have declined to Rs 55 per kg and will further drop in the coming days,” Chopra told PTI.Sugar production in the 2025-26 marketing year (October-September) is estimated at 306 lakh tonnes, lower than the earlier estimate of 343 lakh tonnes. However, annual domestic demand is around 280-285 lakh tonnes and the country has enough sugar stocks, he said.Last week, the Centre had allowed imports of 1 million tonnes of raw sugar as part of efforts to bring prices down. It also imposed stock limits on bulk consumers and asked states to step up inspections to prevent hoarding and speculation.National Federation of Cooperative Sugar Factories (NFCSF) managing director Prakash Naiknavare said ex-mill prices were now at Rs 55 per kg or below across the country.“Flying squads” have been sent out across the country to check hoarding, Naiknavare said. He added that the Centre’s action had helped stop the rise in prices and that rates at the mill level could fall further.There is usually a difference of Rs 2-3 per kg between ex-mill and wholesale prices, while the gap between ex-mill and retail prices is generally Rs 7-8 per kg, Naiknavare said.However, consumers have yet to see a fall in sugar prices in wholesale and retail markets. The average wholesale price across India was Rs 58.29 per kg on August 24, while the average retail price was Rs 63.05 per kg, according to consumer affairs ministry data.
