Upward Trend Persists in Sugar Market

20-Aug-2026 06:05 PM

New Delhi. Despite various government measures and strict regulations, an upward trend in both ex-factory and open-market sugar prices persists. It is understood that millers are releasing limited quantities of sugar stock while maintaining high price points. Dealers and stockists are compelled to purchase sugar at elevated rates, naturally driving up the market price.

Sugar demand and consumption typically rise during the festive season, often accompanied by higher prices; this is not unusual. However, this time, prices are not merely rising—they are surging. When ex-factory and wholesale prices exceed ₹5,000 per quintal, retail prices naturally climb to a record high of ₹55 per kilogram—a scenario currently unfolding.

In reality, psychological factors are influencing the sugar market. The 2025-26 marketing season is set to conclude at the end of next month (September). By September 30, 2026, the Indian industry is expected to hold a sugar stock of only around 4 million tonnes (or less), whereas stock levels usually hover between 6.0 and 6.2 million tonnes. Mills face no significant pressure to offload stocks, giving them the opportunity to raise prices and release inventory intermittently.

Dealers and stockists fear receiving limited sugar supplies during September and October, even as demand is expected to be robust. The government has mandated that dealers must lift sugar within seven days of purchase from mills. Meanwhile, a new rule coming into effect on September 1 will prohibit dealers with a monthly turnover exceeding 10 tonnes from holding stock for more than 15 days.