India Sugar Prices Drop 30 Percent After Government Interventions

Ex-mill sugar prices in India fell nearly 30 percent to ₹47 per kg on Monday, dropping from a peak of ₹67 per kg recorded on August 18. The Government of India triggered this decline through a series of interventions, including a ban on sugar exports and the opening of imports.

To further increase supply, the government authorized mills to sell refined sugar intended for export within the domestic market. An estimated 3-3.5 lakh tonnes of this sugar is expected to enter the domestic market over the next two months. Additionally, the government tightened stockholding norms effective September 1, prohibiting bulk users who consume over 10 tonnes monthly from holding stock for more than 15 days.

Despite the wholesale price drop, retail prices remain high as sellers work through expensive existing inventory. The central government has accused mills of inflating prices, even as production estimates for the 2025-26 marketing year were revised downward to 306 lakh tonnes from an initial 343 lakh tonnes.