With the festive season approaching, rising sugar prices are raising concerns that sweets could become more expensive for consumers. Increasing demand, lower production and concerns over stocks have pushed sugar prices higher in the domestic market.

According to recent market data, sugar prices have increased by around 8% on average over the past month, while prices in some states have risen by nearly 15%. Wholesale prices have also increased by up to ₹400 per quintal.

Sugar Mills Plan Early Crushing

To increase supplies and ease price pressure, sugar mills are reportedly planning to begin the crushing season 10 to 15 days earlier than usual this year. The move is aimed at bringing fresh sugar into the market sooner, particularly ahead of major festivals such as Dussehra and Diwali.

Why Are Sugar Prices Rising?

Lower-than-expected production is one of the key reasons behind the price rise. Initial estimates had projected sugar production at around 29.3 million tonnes, but actual production is estimated at approximately 28 million tonnes, nearly 5% below the projection.

The country, however, has around 5 million tonnes of carryover stock from the previous year. With annual domestic consumption also estimated at around 28 million tonnes and nearly 800,000 tonnes already exported, concerns over future availability have added to market pressure.

Fears of lower production next year have further contributed to the price rise.

Retail Prices Climb Across Major Cities

Retail sugar prices have increased in several major cities. In Delhi, prices have risen from ₹45 to ₹49 per kg. In West Bengal, prices have climbed from ₹49 to ₹55 per kg. Chennai has seen an increase from ₹46 to ₹53, while Mumbai prices have risen from ₹46 to ₹52. In Ranchi, prices have increased from ₹47 to ₹51 per kg.

The price rise could benefit sugar producers but may put additional pressure on household budgets during the festive season.

Higher sugar prices could also affect the government’s ethanol blending programme, as mills may find direct sugar sales more profitable than diverting sugarcane juice for ethanol production. The government has been monitoring stocks and imposing measures to control prices, but the impact on retail markets remains limited so far.

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