Sugar prices hold firm above Rs 60/kg despite government intervention

Sugar prices showed little sign of moderating across the country's retail markets, with Consumer Affairs Ministry data revealing an all-India average of Rs 64.24 per kg as of August 30. The price represents a sharp 30 percent increase from a month earlier and a year-on-year surge of 38.63 percent, underscoring persistent inflationary pressures in the sweetener market.

Price variations across major cities underscored regional disparities, with Delhi recording Rs 62 per kg, Mumbai at Rs 66, Chennai at Rs 63, and Ranchi at Rs 68. The nationwide range extended from a minimum of Rs 40 per kg to a maximum of Rs 74 per kg, indicating significant market segmentation and possible supply-chain inefficiencies.

Wholesale prices similarly remained firm at Rs 59.73 per kg, registering month-on-month and year-on-year increases of 31 percent and 38.63 percent respectively. The wholesale price had risen from Rs 58.66 per kg the previous week, signaling sustained demand pressures despite government interventions including export restrictions and stock releases.

The price resilience persists even as ex-mill rates have declined approximately 20 percent, suggesting that price transmission through the supply chain remains constrained. Analysts attribute the disconnect to logistical bottlenecks, storage costs, and distributor margins maintaining upward pressure on consumer prices.