The rise in sugar prices across India has sparked widespread discussion in recent days. Retail sugar prices in several states are reportedly ranging between ₹55 and ₹70 per kilogram. Amid the increase, a new question is emerging: Could the price of rum, which is linked to the sugarcane industry, also go up?
Since sugarcane and the sugar industry are closely associated with rum production, concerns over a possible rise in rum prices are understandable. However, experts point out that an increase in retail sugar prices does not necessarily mean that rum prices will immediately rise.
How Is Rum Made?
Traditionally, rum is produced using sugarcane juice or sugarcane-derived products such as molasses. The raw material undergoes fermentation and distillation, during which sugars are converted into alcohol.
Therefore, traditional rum production does not require manufacturers to add retail table sugar separately. This means that a rise in the retail price of table sugar does not directly translate into a similar increase in rum production costs.
The cost of rum can depend on several other factors, including the availability and price of sugarcane-derived raw materials, production expenses, taxation, transportation and distribution costs.
As a result, while rising sugar prices may affect parts of the sugarcane industry, it would be premature to conclude that rum prices will automatically increase simply because retail sugar has become more expensive.