Sugar Prices Rise Over ₹4 Per Kg in a Month Amid Tight Supplies and Festive Demand

Sugar prices in retail and wholesale markets have increased by over ₹4 per kg over the past month due to tight supplies, festival demand, and lower-than-estimated production. In response, the government has implemented stock limits, imports, and earlier crushing operations.

Sugar prices have increased by more than ₹4 per kg over the last month across both retail and wholesale markets. This upward trend comes even as the government takes measures to ease tight supplies during the festival season.

According to data from the consumer affairs ministry, average daily retail prices stood at ₹59.50 per kg, while wholesale prices averaged ₹55.40 per kg.

On a year-on-year basis, prices have risen significantly by ₹12 to ₹13 per kg. A year ago, retail sugar prices were recorded at ₹46.50 per kg, with wholesale prices at ₹43.23 per kg.

Among major metropolitan cities, Kolkata recorded the highest retail price at ₹65 per kg on November 3, compared to ₹50 a year earlier. Delhi followed with a retail price of ₹64 per kg, up from ₹46 a year ago, while Mumbai logged ₹61 per kg against ₹45 previously.

According to market assessments, prices remain elevated primarily because production for the 2025-26 period fell short of earlier estimates. Additional pressure has come from festive demand, crop damage, tighter global supplies, and hoarding.

To manage the situation, the government has responded by imposing stock limits, facilitating imports, increasing market monitoring, and enabling an earlier start to the crushing season.

Meanwhile, the National Federation of Cooperative Sugar Factories Ltd (NFCSF) reported that India produced 8.45 lakh tonnes of sugar in the first month of the 2026-27 season, which runs from October to September.

The crushing season officially began on October 8. Data shows that 152 mills had produced this volume of sugar up to October 30, contributing to domestic supplies during the ongoing festive period.

"The recent spike in sugar prices highlights how supply chain pressures, crop damage, and shifting production estimates can quickly impact consumer markets, especially during peak festive periods. While government interventions like stock limits and early crushing help stabilize availability, businesses dependent on sugar as a raw material must closely monitor commodity price volatility and factor these fluctuations into their working capital and operational planning." — Dr. Shishir Gupta, Founder & CEO, StartupLanes