India, Sept. 5 -- Sugar prices have fallen sharply at mill gates over the past two weeks, but the decline is yet to fully reach consumers, with retail prices falling only around 4% even as ex-mill rates have dropped more than 23%.

Average ex-mill sugar prices, which were above Rs.6,500 per quintal on August 20, have fallen to an all-India average of Rs.4,800 per quintal as of September 3, according to trade sources. In contrast, the all-India average retail price has eased from a peak of around Rs.65/kg to Rs.62.23/kg-a decline of just 4.3%.

The sharp fall in ex-mill prices comes after the government cracked down on hoarding and speculative trading, tightened dealer stock limits, opened imports for the first time in nearly a decade and ...