New Delhi, India – Retail and wholesale sugar prices across India have surged by nearly 40%, with some states recording increases of up to 50% compared to the same period last year. In eight states, including Uttarakhand, Punjab, Madhya Pradesh, and Odisha, prices have crossed ₹65 per kilogram. Odisha recorded the highest price at ₹67.4 per kg on August 23, up from ₹55 a week ago and ₹46.89 a year earlier. The sharp rise has sparked political debate, with the Opposition and farmers’ groups pointing fingers at the government’s ethanol diversion policy, while the government cites a combination of factors.
The Opposition has blamed the diversion of sugar cane for ethanol production as the primary cause of the price rise. Farmers’ groups, however, argued that the increase was artificially created by big traders ahead of the festive season. The Union government, in response, has said it is closely monitoring the situation and attributed the rise to a mix of factors, including lower-than-expected domestic production, increased demand ahead of the festive season, weather-related damage to sugar cane crops, tightening global sugar supplies, and speculation and hoarding by some sections of the industry. To ease supply pressures, the Union Commerce Ministry issued a notification allowing the import of 10 lakh tonnes of sugar until October 31, 2026.
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The price surge has raised concerns about inflation and its impact on consumers, especially during the festive season. While the government maintains that the situation is under control, the import decision and ongoing monitoring suggest a need to address the supply-demand gap. The coming weeks will determine whether these measures can stabilize prices and ease the burden on households across the country.
