- August 21, 2026
Sugar Prices Jump Rs 7/Kg In One Month: What’s Driving The Sharp Rise Ahead Of Festive Season?
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Sugar prices in India jumped by Rs 7.52 per kg in a month, rising to Rs 55.70 per kg. Here’s why sugar prices are rising ahead of the festive season.
Sugar production in India during the current season is now estimated at around 306 lakh metric tonnes (LMT), significantly below the initial estimate of around 343 LMT made by sugarcane-growing states.
Sugar prices in India have risen sharply over the past month, climbing by nearly Rs 7 per kg as demand typically begins to pick up ahead of the festive season.
According to data from the Ministry of Consumer Affairs, Food and Public Distribution, the average sugar price increased from Rs 48.18 per kg on July 20, 2026, to Rs 55.70 per kg on August 20 — a rise of Rs 7.52 per kg, or around 15.6 per cent, in just one month.
Why Are Sugar Prices Rising?
The government attributed the recent increase to a combination of factors, including lower-than-expected domestic sugar production, higher demand ahead of the festive season, weather-related damage to sugarcane crops, tightening global supplies, and concerns over speculation and hoarding.
Sugar production in India during the current season is now estimated at around 306 lakh metric tonnes (LMT), significantly below the initial estimate of around 343 LMT made by sugarcane-growing states.
The government said sugarcane crops have also been affected by diseases such as Red Rot and Top Borer, along with waterlogging caused by excessive rainfall in some growing regions.
Global supply concerns have added to the pressure. The global sugar deficit for 2026-27 is estimated at around 33 LMT, while adverse weather conditions have further weakened the production outlook in key sugar-producing regions.
Global Sugar Prices Also Rise
The rise in domestic sugar prices comes alongside a sharp increase in international prices.
According to government data, international sugar prices climbed from $474 per tonne on June 30, 2026, to $552 per tonne on August 20 — an increase of more than 16 per cent in less than two months.
With global supplies tightening and domestic production lower than initially projected, the government has moved to increase availability in the domestic market.
Govt Plans Duty-Free Sugar Imports
As a precautionary measure, the government has decided to permit duty-free imports of 10 LMT of raw sugar to augment domestic supplies and help contain prices.
The government is also looking to increase domestic production during the upcoming crushing season.
Sugar mills and state governments have been advised to begin the 2026-27 crushing season from October 15. This is expected to increase sugar production in October to more than 10 LMT, compared with the usual monthly production of around 3-4 LMT.
The additional output is expected to improve sugar availability during the festive season, when demand traditionally rises because of increased consumption of sweets and other sugar-based products.
Is Ethanol Responsible For The Sugar Price Rise?
The government has rejected claims that the recent increase in sugar prices is primarily linked to ethanol production.
According to the government, diverting surplus sugar towards ethanol has helped address a structural problem in the sugar industry while improving the financial health of sugar mills.
The government said it is closely monitoring the situation and has taken measures to ensure adequate domestic availability and maintain price stability for consumers.
Key Questions Answered
Ask News18Experts predict that sugar prices will continue to rise after the festive season, with high demand expected from Raksha Bandhan until Diwali and Chhath Puja.
Ask News18About the Author
Saurabh Verma is a Chief Sub-Editor at News18.com, specializing in Indian politics, national current affairs, and breaking global news. With years of experience tracking power shifts, election strateg…Read More
August 21, 2026, 18:59 IST
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