Sugar Price Down: Good news is here. The government’s strict measures have led to a significant drop in wholesale sugar prices, but the retail prices have not shown much decline yet. Sugar prices have decreased in various markets across India, such as from Rs 6750 to Rs 5200 per quintal in Mumbai and from Rs 6600 to Rs 5700 per quintal in Delhi. In cities like Kanpur, Raipur, Ranchi, Kolkata, Guwahati, Hyderabad, and Chennai, wholesale sugar prices range from Rs 5,400 to Rs 5,900 per quintal, including GST.
Retail sugar prices have remained steady at around Rs 61-63 per kg in different cities like Mumbai, Guwahati, Ranchi, Delhi, Kanpur, Raipur, Kolkata, and Hyderabad. Despite the drop in wholesale prices, retail prices have not seen a significant change. The government has taken various steps to control prices, including imposing stock limits on large consumers and cracking down on hoarders. Duty-free imports of 1 million metric tons of sugar have been allowed, with shipments already en route to Indian ports to ensure an adequate supply in the market.
The government’s efforts aim to stabilize sugar prices, especially with the festive season approaching. If these measures continue to be effective, further reductions in sugar prices can be expected in the upcoming weeks.
Meanwhile he International Sugar Organization (ISO) has lowered its forecast for a global sugar surplus for 2025-26 to 1.1 million tonnes. The global sugar surplus was estimated at 2.2 million tonnes in May, according to the ISO’s quarterly market outlook for 2026, released in August.
Surplus estimates cut for the fourth time
According to the ISO, this is the fourth reduction in the surplus estimate for the crop year. This was primarily due to lower-than-expected sugar production in central and southern Brazil in the first half of the 2026 crop. However, higher production in China somewhat mitigated the impact of this reduction. The ISO estimates Chinese sugar production to be around 13 million tonnes, which would be the highest level since 2013-14.
Projected production decline in 2026-27
The ISO’s first detailed estimate for 2026-27 indicates a decline of about 2 lakh tonnes in global sugar production. According to the organization, global sugar consumption is expected to increase by 0.5 percent, or about 9 lakh tonnes, to 179.6 million tonnes in 2025-26. Consumption may increase by another 0.8 lakh tonnes in 2026-27, reaching 180.4 million tonnes. Sugar production in other parts of the world, excluding Brazil, is expected to decline by about 44 lakh tonnes.
Declining production in the European Union, Thailand, and Central America will be the main reason for this. However, this shortfall is likely to be offset by more sugarcane being diverted to sugar during the 2027 sugarcane crushing season in Brazil. According to ISO, the recent rise in sugar futures prices has made sugar production more attractive than ethanol.