Ex‑Mill Prices vs Retail Gap Highlights Psychological Pricing in Sugar Market

New Delhi – The Grain Ethanol Manufacturers Association (GEMA) has drawn attention to the widening gap between ex‑mill sugar prices and the rates charged in retail outlets.

Chairman Dr. C.K. Jain told IANS that this divergence reflects a market driven more by sentiment than by an actual fall in supply. He noted that ethanol production does not diminish the stock of sugar available for consumers.

The association urges analysts to monitor the ex‑mill versus retail price spread as a key indicator of market mood. When the spread expands, it suggests that price hikes are premised on speculation rather than real scarcity.

GEMA backs the government's stance that ethanol production is not the culprit behind the price escalation.

Even though the 2024‑25 cane season faced setbacks from excessive rainfall, red rot infection, and water‑logging, GEMA maintains that current sugar stocks at mills remain robust, with the next crush season set to start on 15 October, reinforcing supply continuity.