Experts estimate that, after factoring in GST, transportation and handling charges, the ideal retail price should be about Rs 52 per kg
“Sugar mills claim there is weak demand and that they are selling at Rs 48 per kg. Retailers insist they earn only 50 paise to Re 1 per kg. Retail sugar prices should not cross Rs 55 per kg,” he said. Echoing the view, Kolhapur-based trader Gautham Shah said sugar should be retailing at Rs 54-55 per kg. Ex-mill prices are currently Rs 48-49 per kg, down from Rs 52-53 per kg during Navaratra, according to him.
Because sugar availability was adequate, vijay Autade, a sugar industry expert, said wholesale prices remained stable.
At the same time, sugar cane growers must also receive a fair price for their produce,” he said. Industry experts said market fundamentals did not support such high retail prices. “New season sugar has started entering the market, but significant price changes are unlikely,” Shah said.
“Who is profiting from such huge margins? Shetti asked. How can such a massive gap then be justified? Consumers are clearly being cheated. “Govt has permitted mills to sell freshly produced sugar immediately to address any shortage concerns. Traders are currently stocking up for Diwali sales, but supply remains strong.
This disparity came under scrutiny after Swabhimani Shetkari Sanghatana leader Raju Shetti visited retail outlets and a mega mart in Kolhapur district on Friday.