New Delhi, Aug 28:
Retail sugar prices in India fell for the first time in a week on Thursday after the Centre’s decision to allow duty-free imports of one million tonnes of raw sugar began easing market prices.
The all-India average retail price declined to Rs 64.33 per kg from Rs 65.06 per kg a day earlier, according to daily data from the Consumer Affairs Ministry.
Sugar prices had climbed sharply from Rs 55.73 per kg on August 20 to a record Rs 65.06 per kg on August 26.
The government had allowed duty-free imports of one million tonnes of raw sugar on August 20, the first such move in nearly a decade, to improve domestic availability ahead of the festival season.
Ex-mill prices had already begun to fall following the import decision and tighter stockholding limits. The government said wholesale and mill prices had declined by around 18 per cent after measures were taken against hoarding and speculation.
Despite Thursday’s decline, retail prices remain significantly higher than earlier levels. The national average was about 31 per cent higher than a month ago and 39 per cent above the level recorded a year ago.
Tamil Nadu recorded an average retail sugar price of Rs 66.89 per kg, while prices were higher in some other States, including Manipur, Goa and Odisha.
The Centre has attributed the price surge to lower production, weather-related crop damage, higher festive demand and speculative buying, while maintaining that there is no physical shortage of sugar.