Sugar prices may cool as 3–3.5 lakh tonnes of refined sugar reaches Indian market

Government-approved sales of export-bound refined sugar and duty-free raw sugar imports are set to add supply ahead of the festive season. Ex-mill prices have dropped about 20% in 10 days, while average retail sugar prices remain near ₹65 per kg.

— Source publishedThu, 27 Aug, 2026, 17:25 IST·First seen Thu, 27 Aug, 2026, 17:42 IST·Source ET Small Business

What happened

Indian sugar market · Government-approved domestic sales of export-bound refined sugar and duty-free raw sugar imports are expected to improve supply and cool

Key facts

  • 3-3.5 lakh tonnes refined sugar expected to enter domestic market
  • 10 lakh tonnes of raw sugar allowed for duty-free import
  • Ex-mill sugar prices fell around 20% in 10 days
  • Kolhapur ex-mill price: Rs 48/kg
  • Uttar Pradesh mill price: around Rs 53/kg
  • Average retail sugar price: Rs 65/kg
  • Recent prices had risen from Rs 48/kg to Rs 58-60/kg

Why this matters

Lower sugar pricing could improve the economics of acquisitions or partnerships in confectionery, bakery, and beverage categories, particularly ahead of festive-season demand.