News has emerged that may ease the budget for sweets and home cooking before the holidays: the average retail price of sugar in the country has been below 60 rupees per kilogram for four consecutive days. Nevertheless, this relief is not significant, as sugar is still more expensive than in August.
According to data from the Ministry of Consumer Affairs, on Monday, the average retail price of sugar was 59.57 rupees per kilogram, slightly higher than the previous day's 58.99 rupees. The average retail price of sugar first dropped below 60 rupees per kilogram on September 11, after which there has been some price decline in recent days. However, the increase in the average price on Monday compared to the previous day should be noted. It should also be mentioned that on August 21, the average retail price was 58.23 rupees per kilogram, meaning the current average cost is still higher than that level. Thus, the relief gained before the holidays can only be described as a minor decrease.
There remains a substantial difference in sugar prices across different parts of the country. On Monday, the minimum retail price was recorded at 40 rupees per kilogram, while the maximum reached 85 rupees per kilogram. This means that even if the average price is below 60 rupees, many consumers have to pay significantly more in certain trading points. Due to increased demand for sweets and other food products during the holidays, upward pressure on sugar prices in some regions remains.
Sugar prices are not uniform across the states of South India. In Andhra Pradesh, the average price rose from 49.58 rupees per kilogram on August 21 to 55.56 rupees per kilogram on Monday. A price increase was also noted in Karnataka, while there was a slight decrease in Tamil Nadu. In Kerala, the average price increased from 56.75 rupees per kilogram on August 21 to 57.80 rupees per kilogram on Monday.
The situation differs in the major producing states of the country. In Maharashtra, the average retail price decreased from 59 rupees per kilogram on August 21 to 58.22 rupees per kilogram on Monday. A softening of sugar prices also occurred in Uttar Pradesh; the average price fell from 59.64 rupees to 57.88 rupees per kilogram. The price reduction was even more pronounced in Madhya Pradesh: the average price of sugar decreased from 62.36 rupees to 56.57 rupees per kilogram. A small drop was also recorded in West Bengal, with the price falling from 60.95 rupees to 60.43 rupees per kilogram.
To stabilize sugar prices, the government permitted sugar imports on August 21. Furthermore, rules regarding the storage of stocks for wholesale buyers and dealers were tightened. The government's goal is to maintain an adequate supply of goods in the market and control prices. The government has also accused sugar mills of raising prices. The state claims that there are sufficient sugar reserves in the country to meet domestic demand. However, the projected sugar production for the 2025-26 marketing year was reduced from 343 million tons to 306 million tons. Meanwhile, the annual domestic demand in the country is expected to be around 280-285 million tons.
Demand for sugar is increasing due to higher consumption in homes, bakeries, and when preparing sweets during the holidays. Consequently, price pressure may intensify again in the near future. Especially in states and cities where holiday-related demand is high, retail prices may remain above average. Currently, the good news for the average consumer is that the average price of sugar in the country has been below 60 rupees per kilogram for four days. However, compared to August 21, the price is still higher, and there is a significant difference in prices across various cities.
