Sugar prices down but govt remains cautious, keeps close watch on market

Sugar prices have come down from its August peak of ₹65 per kilogram to the current ₹53 per kilogram, but the government continues to keep a close watch on the market.

While its earlier steps included allowing one million tonnes of duty-free raw sugar imports in August to improve domestic availability, the government has continued to tighten controls on the market. Since July, central and state teams have been physically verifying sugar stocks at mills to check for hoarding and artificial scarcity.

Even though prices fell by early September, on September 15, the Centre cut the stock limit for dealers from 4,000 quintals to 2,000 quintals, citing concerns over hoarding and speculative trading. Three days later, it asked bulk consumers to report their sugar stocks every Friday through the food department’s online portal.

On October 1, the government tightened the limits further, allowing dealers to hold no more than 1,000 quintals and for a maximum of 15 days from October 15 to November 30, citing the need to prevent hoarding and ensure supplies during the festive season.

Also Read: Sugar prices see sharp drop at mill gates, decline yet to fully reach consumers

Retail sugar was around ₹46 a kg a year ago and ₹47 in July, before climbing to ₹65 at the peak. It is now around ₹53.

According to agriculture expert and independent director GK Sood, “ ₹53 is the new minimum.”

The government has allowed one million tonnes of duty-free raw sugar imports, ordered stock checks and tightened limits on how much sugar dealers can hold. From October 15, dealers will be allowed to hold no more than 1,000 quintals and for no longer than 15 days.