New Delhi: Sugar prices have risen sharply in recent weeks, but government data suggests India is not facing a wider sugar shortage. Retail prices increased
from ₹48.18 per kg on July 20, 2026, to ₹55.70 per kg on August 20, a jump of about 15.6% in one month.
The Centre has responded with stock limits, checks against hoarding, duty-free raw sugar imports and an early start to the crushing season. The government has maintained that the current rise is largely linked to lower production, weather-related crop damage, festive demand and higher global prices rather than any structural supply problem.
Government says India has enough sugar stocks
Sugar production for the current season is estimated at around 306 lakh MT, lower than the earlier projection of 343 lakh MT.
Red Rot and Top Borer disease, along with waterlogging caused by excess rainfall, affected the sugarcane crop. Even with the lower estimate, the government says domestic stocks remain adequate until the new crushing season begins.
India normally consumes around 280 to 290 lakh MT of sugar annually against production of roughly 300 to 340 lakh MT.
Ethanol not behind price rise, government data shows
The Centre has pushed back against claims that ethanol production is taking sugar away from consumers.
Sugar diverted towards ethanol fell from around 12% in 2022-23 to about 9% in 2025-26. Nearly three-fourths of India’s ethanol now comes from grains, mainly maize.
The ethanol programme has also helped mills clear farmer payments. As of August 20, around 97% of sugarcane dues for the 2025-26 season had been paid, according to government figures.
Centre acts against hoarding
The government has identified speculation and hoarding by some mills and traders as another factor behind the recent price increase.
A 400-tonne stock limit has been imposed on sugar dealers until November 30. From September 1, bulk consumers will be restricted to stocks equal to 15 days of consumption.
Central and state teams are also physically checking sugar stocks held by mills.
Duty-free imports and early crushing planned
The Centre has allowed duty-free imports of 10 lakh MT of raw sugar to improve availability.
Mills and states have also been advised to begin crushing from October 15. This could raise October sugar production from the usual 3 to 4 lakh MT to more than 10 lakh MT.
Global pressure remains another concern. International sugar prices climbed from $474 per tonne on June 30 to $552 per tonne on August 20.
Taken together, the government’s measures are aimed at increasing supply before the festive season, discouraging artificial shortages and keeping consumer prices under control.
