Maharashtra proposes dual pricing for sugar; separate rates for household and commercial users
Maharashtra has proposed a dual-pricing system for sugar, with lower rates for household consumers and higher prices for commercial users. The proposal aims to protect consumers while supporting sugar mills and cane farmers amid sharply rising prices, and is now awaiting the Centre’s consideration.
Maharashtra has proposed a dual-pricing system for sugar, with separate rates for household and commercial users, amid a sharp rise in sugar prices.
State Cooperation Minister Babasaheb Patil said the Maharashtra government has submitted a proposal to the Centre seeking different sugar prices for domestic and commercial consumers.
The state government has proposed that sugar sold to household consumers should be priced lower, while commercial users such as biscuit makers, soft drink manufacturers and other businesses should pay a higher rate.
Patil said household consumption accounts for only around 10% of overall sugar sales. Therefore, keeping a lower price for domestic consumers would provide relief to households without putting significant financial pressure on sugar mills.
Under the proposed dual-pricing policy, the government would be able to continue protecting consumers by keeping the minimum selling price of sugar unchanged, while ensuring that sugar mills do not suffer losses, Patil said.
According to the minister, mills could make up for the lower prices charged to household consumers by selling sugar to commercial users at higher rates. At the same time, farmers would continue to get good prices for their sugarcane, he said.
The proposal was submitted to the Union government during a meeting with Union Cooperation Minister Amit Shah and Agriculture Minister Shivraj Singh Chouhan, Patil said.
Maharashtra has suggested that sugar pricing could follow a model similar to LPG, where domestic and commercial users pay different rates, with the aim of providing relief to household consumers.
The proposal comes at a time when sugar prices have risen sharply over the last one month.
As per the Centre government’s data, retail sugar prices increased from ₹48.16 per kg on July 20 to ₹55.70 per kg on August 20. The price has now crossed ₹65 per kg, marking a sharp increase in a short period.
The government has attributed the price rise to several factors, including lower-than-expected domestic sugar production, largely due to weather-induced damage to sugarcane crops, pressure on global supplies, festive demand and hoarding by some sections of the industry. The government has, however, denied that diversion of sugar towards ethanol is responsible for the recent price rise.
The sugar production estimate has also been revised down sharply from around 343 lakh metric tonnes to 306 lakh metric tonnes, which is among the lowest levels seen in the last six to seven years.
The opening stock for the 2025-26 sugar season was also relatively low at around 50 lakh metric tonnes.
With sugar prices rising, the Centre last week also imposed restrictions on stocking by bulk consumers, prohibiting them from holding more than 15 days’ consumption.
Local sweet shops, confectioneries and halwais fall under the bulk consumer category. The new stocking restrictions have raised concerns among these businesses, particularly because the rules will come into effect from September 1, right at the beginning of the festive season.
The Maharashtra government’s proposal for separate household and commercial sugar prices is now with the Centre for consideration.
To Read more about Sugar Industry continue reading Agriinsite.com
Source : CNBC Tv18
