COMMODITY
Sugar prices rise for second day in row in retail market amid uptick in festive demand
Aug-27-2026

The data compiled by the Department of Consumer Affairs (Price Monitoring Division) has showed that sugar prices rose for the second day in a row on August 26 by over Re 1 per kg in the retail market due to an uptick in festive demand. Retail prices of the sweetener continue to be high despite a nearly 20 per cent decline in ex-mill rates after the government’s decision to allow imports of 10 lakh tonnes of raw sugar. As per the data, the all-India average rate of sugar is Rs 65.05 per kg on August 26 as against Rs 63.97 per kg on August 25. The current average price of sugar is 34 per cent higher from Rs 48.68 per kg a month back, while the rate is 41 per cent more than the year-ago level, when sugar was available at Rs 46.27 per kg.

The data showed that the maximum selling price on August 26 was Rs 76 per kg, while the modal rate was Rs 65 per kg. The government and sugar industry bodies have said that the ex-mill rates have fallen in the past few days. However, the impact is yet to be seen at the retail level. According to the data, the wholesale price of sugar also rose marginally to 60.36 per kg on August 26. The average wholesale rate was Rs 45.34 per kg a month ago and Rs 43.02 per kg a year ago.

To control prices, the Centre has recently allowed imports of 10 lakh tonnes of raw sugar by October 31. It has imposed stock holding limits on dealers as well as bulk consumers like beverage makers. Exports were already banned a few months back. According to the Indian Sugar and Bio-Energy Manufacturers Association (ISMA), India’s net sugar production (after diversion to ethanol) is estimated at around 279 lakh tonnes in the 2025-26 marketing year (October-September), while the opening stock was 50 lakh tonnes. The annual domestic demand is projected at 280-285 lakh tonnes, while the country exported 8 lakh tonnes of the sweetener before the government imposed a ban. ISMA has projected the closing stock at 35 lakh tonnes at the end of September.

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