India's ex-mill sugar prices fall nearly 30%, retailers hold rates
Ex-mill sugar prices just fell nearly 30%, from ₹67 per kg to ₹47 per kg on Monday, thanks to government moves to boost supply.
But if you've checked your local shop, retail prices are still stuck at around ₹64.23 per kg.
That's because retailers who bought stock at earlier, higher rates are unwilling to sell at a loss and will keep pricing existing inventory at the older rate until it is exhausted.
Retail cuts delayed, government boosted supply
Retail price drops usually take at least 10 days to show up, say an industry source.
Once shops finish selling their costlier inventory, you should see prices come down too.
The government helped this price dip by letting sugar mills sell more locally and capping how much big buyers can stockpile.
For now, India has plenty of sugar; production is outpacing demand, so lower prices should stick around once they finally reach consumers.