A Reuters report said sugar prices in the country had increased by 20% in August itself. New Delhi: Sugar prices have witnessed a steep rise in India in recent months, with the increase becoming particularly noticeable in August.
Ketan Patel, vice-president of the National Federation of Cooperative Sugar Factories Ltd, said the industry had initially expected sugar production during the 2025-26 sugar year to reach 3.2 crore tonnes (32 billion kg). The rise in sugar prices has made the trade-off between sugar production and ethanol use more important. Lower-than-expected sugar output has tightened supplies at a time when demand is expected to rise during the festival season. The Centre has taken steps to prevent sugar prices from climbing further as the festival season approaches. It has stopped sugar exports, keeping more of the available supply within the domestic market. It has also imposed stock limits on wholesalers, restricting the amount of sugar they can hold. The latest price rise also comes at a time when sugar has become an important part of India’s energy policy. Ethanol gives sugar mills another source of revenue and helps the government meet its fuel-blending targets, while consumers depend on sufficient sugar supplies for everyday use and festival demand.
These measures are aimed at improving domestic availability and preventing large stocks from being held by traders at a time when consumer demand is expected to increase.
