Sugar Prices Soften Following Government Interventions, but Festive Demand Keeps Rates Elevated

Following a series of policy interventions by the central government, the national average retail price of sugar remained below ₹60 per kilogram for the fourth consecutive day on Monday. Despite this cooling trend, heightened demand ahead of the upcoming festival season continues to exert upward pressure on prices in select regional markets.Official data maintained by the Ministry of Consumer Affairs showed that the national average retail price for sugar stood at ₹59.57 per kg on Monday, registering a slight uptick from ₹58.99 per kg on the previous day. Retail rates first dipped below the ₹60 threshold on Friday, maintaining a relatively stable trajectory over the three subsequent days. However, current average prices remain higher than the ₹58.23 per kg recorded on August 21, when the Ministry first sanctioned sugar imports and implemented market restrictions to curb inflationary pressure. Across the country, price variations remained wide, with the maximum retail price recorded at ₹85 per kg and the minimum holding at ₹40 per kg. Price movements across southern states displayed a mixed pattern; Andhra Pradesh and Karnataka saw increases in retail rates, whereas Tamil Nadu and Kerala experienced minor drops. Specifically, the average retail price in Andhra Pradesh climbed from ₹49.58 per kg on August 21 to ₹55.56 per kg on Monday. In Kerala, prices edged upward from ₹56.75 to ₹57.8 per kg over the same duration. Conversely, key sugar-producing states witnessed a notable reduction in consumer prices. In Maharashtra, average retail rates fell from ₹59 to ₹58.22 per kg, while Uttar Pradesh recorded a decrease from ₹59.64 to ₹57.88 per kg compared to levels on August 21. Among non-producing states, Madhya Pradesh registered a sharp decline as prices dropped from ₹62.36 to ₹56.57 per kg, while West Bengal recorded a minor easing from ₹60.95 to ₹60.43 per kg. The price stabilization follows regulatory action initiated on August 21, when the government permitted sugar imports and imposed stricter stockholding limits on dealers and commercial bulk consumers. While the government previously accused sugar mills of artificially inflating prices, it maintained that the nation possesses adequate supply to fulfill domestic demand. For the 2025–26 marketing year (running from October to September), the Centre revised its sugar production forecast downward to 306 lakh tonnes from an earlier estimate of 343 lakh tonnes. Annual domestic demand across India is estimated between 280 and 285 lakh tonnes.