There could be good news for consumers facing high sugar prices, as retail rates are expected to come down over the next 7 to 10 days. Sugar industry bodies believe the recent fall in ex-mill prices will soon translate into lower prices for consumers, providing some relief during the festive season.
The development was discussed at a joint press conference held by the Indian Sugar & Bio-Energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories (NFCSF) in Delhi on September 2. The two organisations reviewed the current sugar supply situation and shared their expectations for retail prices.
According to the industry bodies, ex-mill sugar prices have dropped below Rs 5,000 per 100 kilograms after retreating from recent highs. Maharashtra S-grade sugar is currently priced at around Rs 4,460–Rs 4,500 per quintal, while Gujarat M-grade is around Rs 4,740. In Karnataka, the ex-mill price stands at around Rs 4,960 per quintal.
NFCSF President Harshvardhan Patil said the decline below Rs 5,000 per quintal has taken place across the country. However, he said the benefit has not yet reached consumers in full, as retail prices in several regions continue to remain high at nearly Rs 63 per kilogram.
The industry generally considers a Rs 5 to Rs 8 per kilogram difference between ex-mill and retail prices to be a standard markup. Based on this range, retail sugar prices could come down to around Rs 50–Rs 52 per kilogram.
ISMA Managing Director Deepak Ballani said the reduction in mill-level prices would take some time to move through the distribution chain. He expects the lower rates to become visible in retail markets within the next 7 to 10 days, which could bring relief to consumers during the upcoming festive period.
