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Sugar prices fall for first time after record high as duty-free imports kick in
Even though the average retail price declined, sugar prices remain high in several states, with some markets recording rates well above the national average
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Retail sugar prices fell for the first time on Thursday after surging to a record ₹65.06 a kg a day earlier, with the Centre’s decision to allow duty-free imports of 1 million tonnes of raw sugar beginning to ease market prices.
The all-India average retail price fell to ₹64.33 a kg from ₹65.06 on Wednesday, according to the Consumer Affairs Ministry’s daily price data. It had risen from ₹55.73 a kg on August 20 to ₹65.06 on August 26.
“Wholesale and mill prices had begun to ease, but retail prices remained sticky as they typically lag behind. Even though I still doubt whether sufficient quantities are actually available in the market, the wholesale price fall has begun to show up in retail,” Agri expert and founder of HnyB Deepak Pareek said.
The Centre had allowed duty-free imports of 1 million tonnes of raw sugar on August 20, the first such move in nearly a decade, to boost domestic supplies ahead of the festival season as ex-mill prices touched a record high of INR 7,100 per 100 kg in some states.
Also Read: Rise in sugar prices take a toll on West Bengal’s sweet industry ahead of festive season
Retail sugar prices ease after record high
The easing in retail prices comes after ex-mill prices had already begun to fall following the import decision and tighter stockholding limits. The government had said on Tuesday that ex-mill prices had fallen about 18% after its measures against hoarding and speculation. They are currently hovering between ₹5,500 and ₹5,900 per 100 kg.
Retail prices, however, remain sharply above previous levels. Thursday’s average was about 31% higher than a month ago and 39% above a year earlier, when sugar retailed at ₹46.40 a kg.
Sugar remains expensive across several states
Prices also remain elevated across several states. The average retail price was ₹75.50 a kg in Manipur, ₹72.50 in Goa, ₹70.14 in Odisha, ₹68.18 in Gujarat, ₹67.34 in Karnataka, ₹67.05 in Maharashtra and ₹66.89 in Tamil Nadu. Delhi was at ₹64.33, while Punjab was at ₹66.07 and Uttar Pradesh at ₹64.37.
“While prices have finally broken, a meaningful and sustained relief for consumers will come only when we see real imports arriving or when sugar under advance licences is diverted to the domestic market,” Pareek added.
The government has attributed the price rise to lower production, weather-related crop damage and higher festive demand, stating that there is no physical shortage and that speculative buying contributed to the surge.
Also read: Govt relaxes sugar import condition, gives 60 days to refine, sell shipments
Congress alleges ₹36,000 crore burden on consumers
Meanwhile, Congress general secretary Randeep Singh Surjewala alleged that the Union government deliberately allowed shortage of sugar despite having advance knowledge of a decline in production and buffer stocks resulting in a scam of ₹36,000 crore on consumers during the four-month festive season.
He demanded that a better price should be offered to sugarcane farmers. “During the UPA era, the government gave 500 grams of sugar per person through ration shops. Modi government stopped it.”
