After sugar prices surged in recent days, jaggery prices have also witnessed a sharp increase, adding to concerns over household budgets. Jaggery that was earlier selling at around ₹40–50 per kg is now reportedly priced at ₹80–90 per kg in several markets—almost double the previous rate.
India is one of the world’s leading jaggery producers and does not depend on imports to meet domestic demand. India is estimated to account for around 70% of global jaggery production, while nearly 30% of the country’s sugarcane output is used for jaggery production. India is also a major exporter of jaggery and reportedly exported around 471.9 metric tonnes in 2025–26.
Why Are Jaggery Prices Rising?
The rise in sugar prices is being cited as one of the major factors behind the increase in jaggery prices. With sugar becoming more expensive, consumers are increasingly turning to jaggery as an alternative sweetener, pushing up demand.
Another factor is the decline in stocks from the previous crushing season. Lower availability, delays in the new crushing season and higher sugar prices can put additional pressure on jaggery rates.
Is Ethanol Production a Factor?
Sugarcane and its by-products are also used for ethanol production. This has raised concerns over whether the diversion of sugarcane is affecting the availability of raw material for sugar and jaggery production.
Festival Demand Adds Pressure
Festival demand is another important factor behind the increase. During Onam, demand for jaggery and sugar rises significantly, particularly in Kerala and other southern states.
Traders typically receive around 80 trucks carrying sugar, with each truck transporting nearly 40 tonnes. During the Onam season, orders can reportedly rise to around 240 trucks, reflecting the sharp increase in festive demand.
With sugar and jaggery prices climbing together, consumers could face additional pressure on their household budgets during the ongoing festive season.