Sugar Prices Drop as Market Anticipates Duty-Free Imports
· Business · Times of India, LiveMint
Retail sugar prices in India recently surged to an average of Rs 64.24 per kilogram, representing a 38.63% increase over the previous year. This price spike was driven by a production shortfall, with the 2025-26 season output estimated at 306 lakh metric tonnes due to crop damage and excessive rainfall. In response to rising costs and reports of market hoarding, the government authorized the import of 10 lakh tonnes of raw sugar duty-free. Although these imports have not yet arrived, ex-mill prices have already corrected by nearly 20%, falling to approximately Rs 55 per kilogram. The market stabilization is attributed to the anticipation of increased supply following the government's intervention.
Why it matters
The decline in ex-mill prices offers potential relief to household budgets and food businesses ahead of the peak festive season. The government's move to tighten stock limits and allow imports aims to curb speculative trading and ensure domestic availability.
Read the original report — Times of India
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