Sharp Drop in Sugar Ex-Factory Prices

03-Sep-2026 04:15 PM

New Delhi. Driven by government regulations and pressure, sugar ex-factory prices have witnessed a sharp decline of nearly 30 percent from their peak levels, and wholesale rates have also dropped; however, retail prices have decreased by only 5 percent.

It is anticipated that retail sugar prices may also see a significant drop in the coming days. Retailers are close to exhausting the stocks of sugar purchased earlier at higher prices, while new supplies are being procured at comparatively lower rates.

Except for Uttar Pradesh and a few other northern states, ex-factory sugar prices in other regions have fallen below ₹5,000 per quintal.

A joint press release issued by the sugar industry's two apex bodies—including the Indian Sugar & Bio-energy Manufacturers Association (ISMA)—states that a downward trend in sugar prices began, and supply and availability improved, as a result of the concerted efforts of these organizations and measures taken by the Central Government.

The impact of rumors regarding a sugar shortage has now dissipated. Adequate sugar stocks are available to meet festive season demand. Retail market prices for sugar, however, continue to hover above ₹60 per kilogram.