Sugar prices in Maharashtra fell after the removal of import duty
24-Aug-2026 07:30 PM
Following the government's decision to remove import duty on sugar and impose stock limits for bulk consumers, ex-mill and resale prices of sugar in major markets have dropped from record levels.
On Thursday, the government decided to waive the 100% import duty on raw sugar and permitted the duty-free import of 1 million tonnes of raw sugar until the end of October. This move aims to boost domestic supply and curb record-high sugar prices ahead of the festive season.
Additionally, stock limits have been imposed on bulk sugar consumers to control prices. Consumers with a monthly consumption exceeding 10 tonnes will not be permitted to hold stocks for more than 15 days between September 1 and November 30.
This rule applies to confectionery companies, soft-drink manufacturers, food-processing units, sweet shops, and other institutional buyers whose average monthly sugar consumption over the past year has been at least 10 tonnes.
Sugar prices in Maharashtra's Mumbai and Kolhapur markets have dropped by ₹200 per 100 kg. Meanwhile, prices in Uttar Pradesh fell by ₹50–120 per 100 kg.
However, a marginal increase in prices was observed in Uttarakhand.
Sugar prices have been on an upward trend since July; this rally intensified in August due to limited supplies and robust buying by bulk consumers ahead of the peak demand season.
The primary reasons for the record surge in sugar prices are weather-related damage to the sugarcane crop and lower-than-expected production. The government stated that the price rise was not caused by the diversion of sugar for ethanol production. Speculation and hoarding ahead of the festive season also contributed to the price hike.
The market is currently in a "wait-and-watch" mode, awaiting the arrival of imported sugar in the domestic market. The future direction of prices is expected to become clear only after the actual availability of imported stocks. It is noteworthy that despite prices reaching record levels, no additional monthly sales quota has been allocated, suggesting that a cautious approach is being adopted regarding stocks.