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Informist, Tuesday, Aug. 25, 2026

 

By Afra Abubacker

 

NEW DELHI – Ex-mill sugar prices fell further in key Maharashtra markets as the inventory holding limit for bulk buyers, effective from September, discouraged large purchases. In addition, the government's permission to import raw sugar at nil duty till the end of October has eased supply concerns, traders said. However, in a few markets such as Uttar Pradesh and Tamil Nadu, sugar prices were steady from Monday. 

 

In major Maharashtra markets, prices fell by INR 200 per 100 kg amid weak demand. "Earlier people wanted to stock up because the market was going up. Now, nobody wants to stock up," Mukesh Kuvadia, secretary, Bombay Sugar Merchants Association, said. Sugar prices have started declining in many markets after the government allowed duty-free sugar imports to improve supplies. It has also taken several measures against traders and bulk consumers to prevent hoarding and speculation. 

 

Bulk consumers cannot hold more than 15 days' inventory for the next three months starting September, according to a government notification late Wednesday. This applies to large consumers such as confectioners, soft-drink manufacturers, food processing industries, and other institutional buyers with an average monthly sugar consumption of at least 10 tonnes. "Bulk buyers' stock limit will start from Sept. 1. So, demand from them was also limited," Kuvadia said. The government will verify how much sugar each mill sold to bulk consumers, either directly or through dealers. 

 

Monday, the Indian Sugar & Bio-Energy Manufacturers Association, a sugar industry body, said it has requested the government to tighten traders' stockholding limit to 200 tonnes from 400 tonnes. This will ensure prices remain in check and prevent hoarding, it added.

 

To ensure adequate supplies at affordable prices, the government has asked industry associations to ensure sugar mills advance crushing operations for the 2026-27 season by Oct. 15. The early crushing operations should increase October sugar production to around 1 million tonnes, compared to the normal 400,000 tonnes. This will inject fresh supplies precisely when festive demand peaks ahead of Diwali in November, ISMA officials said Monday.

 

According to traders, sugar prices are likely to stabilise in the coming days as government measures have dampened market sentiments and removed incentives for speculation. Sugar prices rallied since July amid speculations that sugar stocks could tighten in the coming months, prompting panic buying ahead of the festival season. Deficient rainfall and forecasts of El Nino strengthening in August and September also added a weather premium to prices. Ex-mill prices rose to INR 6,000-INR 6,400 per 100 kg last week from INR 4,600-INR 4,800 in July. 

 

Following are the ex-mill prices of sugar in the domestic market:

 

--Fell INR 200 to INR 5,950–INR 5,990 per 100 kg in Mumbai

--Fell INR 200 to INR 5,500 – INR 5,680 per 100 kg in Kolhapur

--Flat at INR 5,820–INR 6,050 per 100 kg in Uttar Pradesh

--Fell INR 250 to INR 5,800–INR 6,100 per 100 kg in Karnataka

--Fell INR 200 to INR 6,300 – INR 6,350 per 100 kg in Gujarat

--Flat at INR 6,200-INR 6,350 per 100 kg in Tamil Nadu

 

At 1658 IST, sugar prices on the Intercontinental Exchange were down 1.4% at 17.41 cents per pound.  End

 

US$1 = INR 95.41

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Himanshi Gupta

 

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