Sugar prices in India have surged, with retail and wholesale rates climbing by around 40%, and in some states by as much as 50% compared to the same period last year. In eight states, including Uttarakhand, Punjab, Madhya Pradesh, and Odisha, prices exceeded ₹65 per kg. Odisha recorded the highest price on August 23 at ₹67.40 per kg, up from ₹55 a week earlier and ₹46.89 a year before. The Opposition attributes this rise partly to the diversion of sugarcane towards ethanol production, which has reduced the sugar available for the domestic market. The government promotes ethanol as part of its energy-security strategy and as an alternative market for sugarcane to support farmer incomes. However, this shift has sparked political debate amid concerns over sugar availability and prices.
Farmers’ groups have also alleged that large traders are artificially inflating prices ahead of the festive season. The government points to multiple factors behind the price increase, including lower domestic sugar production, heightened festive demand, weather-related crop damage, tightening global sugar supplies, and speculation and hoarding by some industry sections. To alleviate supply pressures, the Union Commerce Ministry has permitted imports of 10 lakh tonnes of sugar until October 31, 2026. The government stated it is closely monitoring the situation to balance sugar availability for consumers with the promotion of ethanol production.
