Ex-Mill Sugar Prices Decline by Around 20%; Retail Prices Begin Downward Movement

The Ministry of Consumer Affairs, Food & Public Distribution reports that ex-mill sugar prices have declined by around 20% following proactive government measures to address hoarding, speculation, and artificial supply tightening. A nationwide physical verification drive of sugar mills confirmed comfortable stock availability, revealing that some mills held higher stocks than declared or engaged in short selling. To improve market supply chain flow, the Government announced the replacement of the monthly sugar quota system with a fortnightly allocation system starting in September, requiring mills to sell at least 40% of their allocation in the first week. Additionally, mills must dispatch sold sugar within seven days. Upcoming sugarcane crushing from October and unrestrictive sales of October-produced sugar are expected to further strengthen domestic availability.