Sugar prices jump from ₹50 to ₹70/kg in just one week

A press statement issued by the Centre on Friday stated that the recent surge cannot be attributed to diversion of sugar for ethanol, pointing instead to lower-than-expected domestic production, higher festive-season demand, weather-related crop damage and price rise in the global sugar market

MUMBAI: Consumers may be compelled to renegotiate their household budgets ahead of the festive season, beginning with Ganeshotsav next month, as the retail price of sugar has gone up by 40% -- from ₹50 to ₹70 – over the last 10 days.

Sugar prices jump from ₹50 to ₹70/kg in just one week

A press statement issued by the Centre on Friday stated that the recent surge cannot be attributed to diversion of sugar for ethanol, pointing instead to lower-than-expected domestic production, higher festive-season demand, weather-related crop damage and price rise in the global sugar market. It also stated that the government has decided to import 10 lakh metric tonnes of raw sugar to control prices.

It added that sugar production fell in the ongoing year as crops were hit by red rot and top borer disease in sugarcane, as well as waterlogging following excess rainfall. “Despite the lower-than-estimated production, adequate sugar stocks are available in the country to meet domestic demand until the new crushing season begins in October,” the release said.

Closer home, mapping the sharp rise in the prices, Paresh Bhanushali a grocer from Dombivli, said, “We were selling sugar at around ₹48 to ₹50 per kg in the first week of August. But in last 10 days the retail price has gone from up to ₹70.”

Corroborating Bhanushali’s view, Ashok Jain, president of Bombay Sugar Merchants Association Ltd, an organisation of wholesale dealers, said as the price in the wholesale market had touched ₹67 per kg, sugar will be sold at over ₹70 in the retail market. “The wholesale price of sugar was in the range of ₹62 to ₹67 per kg on Friday. The association had written to the central government on August 10 about the price rise in recent weeks, requesting its intervention to control prices with measures such as import of sugar,” said Jain.

Aditya Acharya, partner of D Damodar, a popular sweet-maker from Dadar said the hike has affected their cost as sugar is a key raw material for making sweets. “We buy sugar from the wholesale market every week. Our production cost has gone up by 25% compared to a few weeks ago,” said Acharya, adding that while there are no immediate plans to transfer the cost to the customer, “if it continues in the long term, we will have to think about revising prices of sweets”.

Prashant Sakpal, founder of Prashant Corner, a popular shop that sells sweets and savouries through its 18 branches in the Mumbai Metropolitan Region, expressed concern over the rise in the cost of raw stock, warning about an imminent rise in the price of sweets. “We used to buy good quality sugar at the wholesale market at around ₹42 per kg which has now shot up to ₹58. This has affected the production cost and margins. We cannot absorb the price hike for long and will have to revise prices of our products. Prices have gone up for other raw materials too, but sugar is a big factor,” said Sapkal.

An industry expert pointed out that during the beginning of the 2025-26 sugar season, the All India Sugar Trade Association had estimated 296 lakh metric tonnes of sugar production which was later cut to 283 lakh metric tonnes after lower productivity was seen in some parts of the country, such as UP and Maharashtra.

“India’s average sugar production is around 320 lakh metric tonnes. But actual production this year was less by around 30 lakh metric tonnes. Maharashtra was expected to produce 108 lakh metric tonnes of sugar but only produced 99 lakh metric tonnes. Besides that, there was also a diversion of sugarcane to produce ethanol – around 13 lakh metric tonnes in Maharashtra out of the 24 lakh metric tonnes nationally,” said the expert.

Sanjay Khatal, managing director of Maharashtra State Co-Operative Sugar Factories Federation Ltd, said the central government has started verifying sugar stocks across the nation. “Amid the sudden surge of sugar prices the Centre has started physical verification of sugar stocks at factories and with traders. The real picture will be clear after the report is tabled,” said Khatal.