Ex-Mill Sugar Prices Drop 20%, Retail Rates Also Begin To Fall: Govt

New Delhi: Ex-mill sugar prices in India have fallen around 20 per cent, while retail prices have also started declining as supplies improve, the Ministry of Consumer Affairs, Food and Public Distribution said on Friday.

The government expects the reduction in wholesale prices to gradually reach consumers as lower rates move through the supply chain.

Stock Checks Rule Out Shortage

The ministry said it has been monitoring sugar prices, stocks and movement across the country following the recent spike in rates.

A nationwide physical verification of stocks at sugar mills indicated adequate availability. In some cases, mills were found holding more sugar than declared in their monthly returns.

The government said the findings suggested there was no shortage warranting panic buying or excessive stocking.

Fortnightly Quotas From September

Authorities also detected instances of “short selling”, where mills sold less sugar than allocated under their monthly quotas. Delays in dispatching sugar sold earlier in the month were also found to be restricting supplies.

To improve availability, the government will introduce fortnightly sugar allocations from September, replacing monthly quotas.

Mills will have to sell at least 40 per cent of their allocation in the first week and the remainder in the following week. Sugar sold must also be dispatched within seven days.

Bulk consumers have been advised against holding stocks beyond operational requirements.

New Season Supply Ahead

Sugarcane crushing for the new season will begin from October 15, with production expected to exceed 10 lakh metric tonnes during October.

November output is projected at around 45 lakh metric tonnes, providing substantial additional supplies for domestic consumption. Mills can also sell October production without restrictions.