Indian sugar prices declined in mills' sales for open markets and retail outlets on Monday, ending a nearly two-month rally after the government tightened stock limits, permitted duty-free raw sugar imports and stepped up anti-hoarding checks, according to The Hindu BusinessLine. Ex-mill and tender prices for S-30 grade sugar in Maharashtra fell by over 10 per cent from a peak of ₹6,500 a quintal hit on Thursday, August 20. On Monday, S-30 quotes ranged between ₹5,500 and ₹5,700 a quintal, an industry source who did not wish to be quoted told The Hindu BusinessLine.
Price breakdown across grades and markets
The decline was broad-based. M-30 grade prices dropped to below ₹6,100 from ₹6,950 during the same period, with buyers absent. "There are no buyers in view of the falling prices and other measures taken by the Government," the industry source said.
Retail prices eased to ₹63.05 a kg from a record high of ₹63.12 a kg on Sunday, according to data from the Price Monitoring Division of the Department of Consumer Affairs. In Chennai, Delhi, Mumbai, Kolkata and Hyderabad, retail prices declined by at least ₹3 a kg on Monday. In Pune, sources said prices plunged nearly 20 per cent to ₹60 a kg during the weekend, down from ₹72 last week.
| Market / Grade | Peak / Previous | Latest | Change |
|---|---|---|---|
| Maharashtra S-30 ex-mill tender | ₹6,500/quintal (Aug 20) | ₹5,500–₹5,700/quintal | Down over 10% |
| M-30 grade | ₹6,950/quintal | Below ₹6,100 | — |
| All-India retail | ₹63.12/kg (Sunday) | ₹63.05/kg | Down ₹0.07/kg |
| Pune retail | ₹72/kg (last week) | ₹60/kg (weekend) | Down nearly 20% |
| Global October raw sugar futures | 18.26 cents/lb | 17.16 cents/lb | — |
| London white sugar | $558/tonne (Thursday) | $534.80/tonne | — |
Government measures drive correction
Prices began dropping from August 21 after the government permitted duty-free imports of 1 million tonnes of raw sugar, with the import window open until October 31. At least 4 lakh tonnes of raw sugar are already on their way, and industry sources said more sugar could land by October 15 in time to meet festival demand.
The government also cut the stock limit for bulk users who buy more than 10 tonnes a month to 15 days of their monthly demand, effective September 1. The Ministry of Food asked all mills to furnish details of sugar sold on August 17, 18 and 19, adding pressure on mills and other users. Industry sources said the government was cracking down on sugar traders in different states to check hoarding, and physical stocks with mills are being monitored.
Supply outlook and production estimates
The new stock-holding norm has put pressure on bulk users to offload excess inventories. Sugar prices had soared to new highs, rising by over 35 per cent since June, on fears that supplies may not meet domestic demand until October, particularly during the festival season.
The Hindu BusinessLine reported that sugar production during the current season (October 2026 – September 2027) is expected at around 306 lt, including diversion for ethanol, compared to the initial estimate of around 343 lt. Separately, 8 lakh tonnes of sugar were exported before the Centre imposed a ban.
The Centre denied that ethanol diversion drove the price surge. "The share of sugar diverted for ethanol has declined from around 12 per cent in 2022-23 to around 9 per cent in 2025-26. Moreover, nearly three-fourths of the ethanol produced in the country now comes from grains, particularly maize," the government said in a statement. The government had allowed 20 lakh tonnes of sugar for exports, but barred shipments after 8 lakh tonnes were shipped.
Global sugar prices weaken
International prices fell after the import announcement. October raw sugar futures, which surged to 18.26 cents a pound soon after the announcement, traded down at 17.16 cents at 1730 hours IST. Raw sugar for cash was quoted at 17.6 cents. In London, white sugar dropped to $534.80 a tonne from $558 on Thursday.
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