New Delhi, Aug. 31 -- Ex-mill sugar prices fell nearly 30 per cent to Rs 47 per kg on Monday, from a peak of Rs 67 per kg on August 18, following a series of government interventions, but the drop has yet to filter down to retail shelves, industry sources said.
While the decline in ex-mill rates gets reflected almost immediately in wholesale markets, retail prices tend to lag.
Retailers who bought stock at the earlier, higher rates are unwilling to sell at a loss and will continue pricing their existing inventory at the older rate until it is exhausted, the sources explained.
A retailer typically holds 10-15 bags of sugar, each weighing 50 kg. Only once fresh stock is procured at the lower rate will retail prices adjust accordingly.
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