Stories
Why India's Sugar Prices Are Soaring Ahead of Diwali
- •Sugar prices in India have surged over 13 per cent in just six days due to strong festive demand from households and sweetmakers.
- •In Uttar Pradesh and Maharashtra, ex-mill rates have climbed significantly, reaching Rs 5,200 and Rs 5,100 per quintal respectively.
- •The government attributes the rare shortage to a dip in sugarcane cultivation, poor rainfall from El Niño, and hoarding.
- •Farmers and experts point to shifting crop preferences and declining returns as key factors reducing available sugarcane for processing.
- •To combat the price hike, the central government has permitted duty-free imports of raw sugar, imposed stock limits, and released extra sugar stocks.
Key Questions Answered
Sugar prices in India have spiked significantly due to a combination of strong festive demand from households and sweetmakers, lower sugarcane production caused by poor rainfall during the El Niño weather and crop damage, and hoarding by traders.
To improve availability and combat hoarding, the central government has allowed duty-free imports of 1 million million tonnes of raw sugar, imposed strict stockholding limits on dealers, prohibited bulk consumers from buying in the open market, and released 1.4 million tonnes of sugar for the second half of October.
According to government data, sugar production for the 2025-2026 season is anticipated to be around 30.6 million tonnes, which is 11 per cent lower than the previous estimate of 34.3 million tonnes.
