According to the Department of Consumer Affairs, the all-India average sugar price stood at Rs 65.06 per kg on August 26.

What's behind the sudden fall in sugar prices?

Retail market prices across the country remained high despite a nearly 20% decline in ex-mill prices. This comes after the government decided to allow duty-free import of 10 lakh tonnes of raw sugar.

At present, the average price of sugar is 31% higher than the level a month ago and 39% above a year ago. The Indian Sugar and Bio-Energy Manufacturers Association said in a statement, 'Sugar prices have corrected to about 20 per cent from recent highs as the impact of supply-side measures and improved market conditions is becoming visible in the market.'

Sugar price hike in recent weeks

Sugar prices rose in recent weeks, from Rs 48.18 per kg on July 20, 2026, to Rs 55.70 per kg on August 20, 2026. The increase can be attributed to a combination of factors such as:

• Tightening international sugar supplies and rising prices
• Growing demand ahead of the festive season
• Weather-related damage to the sugarcane crop
• Speculation and hoarding by some sections of the industry
• Lower-than-expected domestic production

Why is the sugar price easing?

The easing in all-India average retail prices comes after ex-mill rates had already started to decline after the import decision and restrictions on stockholding. The Centre said Tuesday that ex-mill prices had fallen about 18 percent after imposing strict measures. They are currently hovering between Rs 5,500 and Rs 5,900 per 100 kg.

Retail prices, however, remain significantly above earlier levels. August 27's average was about 31 percent higher than a month ago and 39% higher than the price a year ago, when sugar retailed at Rs 46.40 a kg.

The all-India average retail sugar price is about Rs 64-65 per kg on August 28.