Wholesale sugar prices have fallen by around Rs 500 per quintal, but consumers are yet to see any relief at retail stores.
The government says adequate stocks are available and has stepped up checks against hoarding and profiteering.
Highlights
- Wholesale sugar prices fell by around Rs 500 per quintal in recent tenders.
- Retail sugar prices climbed to Rs 60.26 per kg, with rates reaching Rs 60-70 in several markets.
- The government says the price surge is not supported by supply fundamentals.
- Food Secretary Sanjeev Chopra blamed speculation, hoarding and profiteering for the sharp increase.
- Sugar stocks are expected to remain adequate during the upcoming festive season.
- Ten central teams will conduct physical verification of sugar stocks across states.
Story
New Delhi: Sugar prices continue to pinch household budgets despite a sharp decline in wholesale rates, with the government blaming speculation, hoarding and profiteering for the unusual increase in retail prices.
According to the report, sugar sold through mill tenders became cheaper by around Rs 500 per quintal. However, the benefit has not reached consumers, with retail sugar prices rising to Rs 60.26 per kg and touching Rs 60-70 per kg in several markets.
Trade sources said Loknete Baburao Patil Agro Industries Limited in Solapur, Maharashtra, sold S-30 grade sugar at Rs 5,850 per quintal. The mill reportedly sold around 70 tonnes at this price and offered additional quantities to interested buyers at the same rate.
In another tender, S-30 sugar prices dropped from Rs 6,600 per quintal to Rs 6,100, while M-30 grade prices declined from Rs 6,725 to Rs 6,225 per quintal.
Despite the decline at the wholesale level, data from the Department of Consumer Affairs’ price monitoring division showed retail sugar prices rising by more than Rs 2 per kg on Saturday from Rs 58.23 per kg on Friday.
Food Secretary Sanjeev Chopra said the current increase in sugar prices was not driven by market fundamentals as domestic availability and stocks remain adequate. He described the rise as unjustified and attributed it to speculative activity, hoarding and profiteering.
The government expects sufficient supplies during the festive season. According to the Food Secretary, closing stocks for the season are estimated at 33-35 lakh tonnes. Early sugarcane crushing beginning around October 15 could add another 10-12 lakh tonnes, further strengthening availability.
The Centre has also intensified its action against possible hoarding. Ten government teams are expected to visit different states to physically verify sugar stocks and investigate suspected cases of stockpiling and excessive profiteering.
States have also been directed to enforce the government’s stock-limit rules and take action against businesses found hoarding sugar or engaging in unfair profiteering.
