Mills Sell Just 7 Lakh Tonnes of Sugar at ₹50/kg in August, Significantly Higher than 2025-26 Season Average of ₹41/kg.

The pan-India average ex-mill sugar price currently stands at approximately ₹4,450 per quintal, representing a significant decline of nearly 30% from its peak levels. Retail prices have also adjusted downwards, with a reduction of about 11-12%, leading to an average price of roughly ₹57.5 per kg across the country as noted in a joint statement by the Indian Sugar & Bio-energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories (NFCSF). Prices in major sugar-producing states, such as Uttar Pradesh at ₹55.09/kg and Maharashtra at ₹56.74/kg, are even lower than the national average.

The decline in sugar prices can be attributed to a combination of favorable market dynamics and sustained government efforts aimed at maintaining a balanced sugar ecosystem. The industry associations emphasized that the recent price surge was temporary and did not yield windfall gains for sugar mills, as the majority of annual dispatches occurred at significantly lower price points. With domestic consumption levels in mind, it is evident that over 97.5% of the market requirements have been supplied at normal price levels, reinforcing the stability of supply and affordability for consumers.

In the short term, traders and investors may see potential opportunities as prices stabilize around current levels. The fact that sugar mills have successfully cleared around ₹1.12 lakh crore in dues to sugarcane farmers signals a commitment to maintaining operational stability. However, caution is warranted as ex-mill realizations remain below operational costs. Investors should monitor market trends closely as further governmental initiatives or shifts in demand could influence price movements in the near future.

Source: Market Source

(Expert Note: This report was independently prepared by the Wealthova Commodities team.)