Sugar retails for around Rs 50 per kg, Centre tells mills to submit stock details
Retail sugar prices in Maharashtra have risen to ₹49–51/kg, driven by concerns over tighter supplies and lower production linked to delayed monsoon rains. The Centre has ordered physical stock verification at mills to curb speculation and ensure adequate availability before the festive season.
Kolhapur: Retail sugar prices have climbed steadily across Maharashtra over the past few weeks, touching Rs 49 per kg in Kolhapur, Rs 50 per kg in Pune and Rs 51 per kg in Mumbai, while packaged sugar in malls is retailing at around Rs 55 per kg.
Industry experts attributed the price rise to growing concerns over tight sugar availability and expectations of lower production in the upcoming crushing season due to delayed and deficient monsoon rainfall linked to El Niño conditions. With sugar being an essential commodity, Centre closely regulates the sector through export controls, sales quotas and stock management measures.
In Kolhapur, wholesalers are selling medium-grade sugar to retailers at Rs 45-48 per kg, with shopkeepers adding margins of Rs 2-3 per kg. The current ex-mill price stands at around Rs 43.50 per kg, excluding transportation and taxes, and has increased by nearly Rs 1.50 per kg in the last fortnight.
According to sources, govt has already moved to prevent any sharp escalation in prices ahead of the festive season, when demand traditionally rises. Authorities fear that domestic stocks may remain only marginally above consumption requirements, increasing the risk of supply-side pressures.
In a July 24 notification, Centre directed all sugar mills to conduct physical verification of their stocks and submit details in a prescribed format. The order stated that sugar sold or dispatched during July must be duly accounted for while determining actual stock levels during inspection.
The notification also warned that any discrepancy between reported and physically available stocks would be treated as a violation of the Sugar Control Order. Mills found with stock mismatches might face restrictions, including denial of their sugar sale quota for Oct.
Sugar industry expert Vijay Autade said the supply situation had tightened significantly following lower-than-expected production in the last season. “Sugar output for the 2025-26 crushing season was initially estimated at around 310 lakh tonnes, but actual production ended at nearly 275 lakh tonnes. This 35-lakh-tonne shortfall has created a supply crunch,” he said.
Autade said Centre might introduce additional measures to curb speculation and ensure availability. “Govt could impose stock limits on traders to prevent hoarding, allocate weekly sales quotas to manage supplies more tightly and even allow an early start to the next crushing season if required,” he said.
A sugar merchant from Kolhapur, however, said Centre’s stock verification order had already helped cool market sentiment. “Prices have stabilised since the notification was issued. It is an open secret that sugar stocks are lower than usual. But if physical verification officially confirms a shortage, it could backfire and trigger fresh price increases driven by market sentiment,” he said.
To Read more about Sugar Industry continue reading Agriinsite.com
Source : The Times Of India
