India sugar prices retreat from Rs 65/kg peak as retail relief lags mills
AI Market Summary
India's sugar prices are easing after an August spike: ex-mill prices fell ~25-30% while retail prices have declined more slowly (~10-12%), indicating incomplete pass-through in the supply chain. Policy actions (duty-free raw sugar imports, hoarding crackdown, inventory caps) and improving availability are loosening near-term pricing power. However, a 27% production drop and decade-low projected opening stocks keep the broader balance sheet tight.
Impact level
● Medium
Affected assets
NCCOSUGAR2USD/USDT+1.83%
AI Insight · NCCOSUGAR2USD/USDTAI Insight
▼ Bearish
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Sugar prices in India have eased after jumping to Rs 65/kg in August, with ex-mill rates down nearly 25% and retail prices falling by around 10% to about Rs 58.50/kg. The average retail price stood at Rs 58.02/kg on Tuesday, up 25% year on year but down 3% from last month, according to the Department of Consumer Affairs’ Price Monitoring Cell. Industry estimates show 2025-26 sugar output fell 27% to around 28.1 MT, while the pace of declines has varied across the supply chain.
