Retail sugar prices rise 39% year-on-year as domestic supply tightens
Lower production, weather-related crop damage, festive demand and stronger international prices have contributed to the increase.NEW DELHI:
India’s average retail sugar price was 39 per cent higher year-on-year as of August 27, reflecting tighter domestic availability, rising consumption and stronger global prices, according to government data examined by Business Standard.
The government has attributed the increase to lower domestic production, weather-related damage to the sugarcane crop, higher festive demand and rising international prices.
Separate Consumer Affairs Ministry data placed the all-India average retail price at ₹64.24 per kilogram on Sunday, compared with ₹63.12 a week earlier. Retail prices remained above ₹60 per kilogram in most markets despite measures intended to curb hoarding and improve supplies.
India’s sugar consumption reached the equivalent of 100.3 per cent of production during the 2025-26 sugar season, compared with 93 per cent in 2019-20. The country’s sugar trade surplus consequently fell from $5.4 billion in 2022-23 to $775 million in 2025-26.
The government has imposed a 400-tonne stock limit on sugar dealers until November 30. From September 1, bulk consumers will be prohibited from holding stocks exceeding 15 days of consumption. Central and state teams have also begun physical verification of stocks held by mills.
India has gradually diversified the raw materials used for ethanol production. Corn accounted for 25 per cent and rice for 12 per cent of ethanol feedstock in 2025-26, reducing some of the programme’s dependence on sugarcane.
