Sugar Rates: Sugar may become more expensive during the festive season. Anticipating this, the government has already initiated strict measures, including stock limits. It has also banned sugar exports.

Sugar Price Hike: Sugar rates rise from Delhi to Mumbai

Sugar Price Hike: The festive season hasn't even arrived in the country yet, but sugar prices have already started rising. Sugar prices from Delhi to Mumbai have risen by 8-15% in the past month. In Delhi, the price of sugar has risen from ₹45 per kg to ₹49 per kg. Similarly, in Mumbai, its price has jumped from ₹46 to ₹52 per kg. Similarly, in West Bengal, sugar is currently being sold for ₹55 per kg.

Why are sugar prices rising?

• The festive season begins in August and continues until December. During this period, numerous festivals such as Rakhi, Ganesh Chaturthi, Dussehra, Diwali, and Christmas will fall one after another. Demand for sweets, cakes, pastries, and cold drinks is expected to surge. This is why wholesale sugar purchases have increased significantly.
• Sugar stocks have fallen to their lowest level in 30 years. Due to lower production last season and the export of approximately 800,000 tons of sugar, mills are estimated to have a mere 3.5 million tons of stock on October 1st. This is the lowest in 30 years. Consequently, sugar mills are gradually releasing their stocks into the market, anticipating further price increases. This is leading to a shortage in the market.
• El Niño and below-normal rainfall in parts of the country during June and July have reduced sugarcane production in major sugar-producing states like Maharashtra, Karnataka, and Uttar Pradesh. Furthermore, fears of a sugar shortage in the international market have led to skyrocketing prices. Meanwhile, logistics and freight costs have also increased within the country.

The government took strict steps

To control rising sugar prices, the government has imposed stock limits on traders until November 30, 2026. As a result, traders will no longer be able to store more than 4,000 quintals of sugar at a time. This will prevent hoarding. Furthermore, to control domestic prices, the government has also imposed a complete ban on sugar exports.

On the government's instructions, sugar mills in Uttar Pradesh and Maharashtra will start crushing sugarcane 10 to 15 days earlier this time, in mid-October instead of November, so that new sugar can reach the market during the festive season.