Sugar Industry Faces Challenges as Retailers Implement Price Caps
MUMBAI: As the festival of Raksha Bandhan approaches, Indian consumers face restrictions on sugar purchases due to dwindling supplies. Major grocery retailers, including DMart and Reliance, are limiting customers to two or three kilograms of sugar each, a move echoed by online platforms. Despite these limitations, there is currently no stock-out situation, according to an executive from a leading sugar brand.
Retailers and e-commerce companies are responding to a significant decline in sugar stocks. The closing stock for the sugar season 2026 is projected at 3.9 million metric tons (MMT), which is 25% lower than the previous year and 40% below the five-year average of 6.5 MMT. In response, the government has approved the import of 1 million tonnes of raw sugar, marking the first such action in a decade.
Sugar prices have surged as a result of the limited supply. Earlier this week, the average all-India retail price reached Rs 63 per kilogram, a 29% increase from Rs 48.7 per kilogram just a month ago. Analysts predict that prices will continue to rise in August and September, despite the recent import approvals. The average price increase is now estimated at around 7%, down from 9% previously. Retailers are taking steps to manage demand, with quick commerce platforms limiting sugar purchases to prevent hoarding.
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