Odisha, Madhya Pradesh, Punjab hit the most by sugar price hike

Odisha, Madhya Pradesh, and Punjab recorded the steepest increases in sugar prices, with Odisha reaching ₹64.72 per kilogram on August 21, 2026, up ₹17.80 from the same day in 2025. Across 18 states and union territories, prices rose by ₹10 to ₹18 per kilogram over the past year. The national average stood at ₹58.23 per kilogram, with consumers in Assam, Delhi, Goa, Kerala, Meghalaya, Punjab, Tripura, and West Bengal also paying more than ₹60 per kilogram. The Union government stated it was closely monitoring the situation and had implemented measures to stabilize prices. Prices climbed steadily throughout the summer, increasing from ₹48.18 per kilogram on July 20 to ₹55.70 per kilogram on August 20. The Ministry of Consumer Affairs, Food & Public Distribution noted that the surge was influenced by multiple factors, including reduced domestic production, heightened demand before the festive season, adverse weather affecting sugarcane crops, constrained global supplies, and speculative behavior by certain industry players. Sugar output for the current season is projected at approximately 306 lakh metric tonnes, falling short of the initial estimate of around 343 lakh metric tonnes from sugarcane-growing states. Madhya Pradesh experienced the largest weekly jump, with prices rising ₹11.82 per kilogram compared to the previous week, while Odisha saw an increase of ₹10.67. Punjab’s prices also surged significantly, climbing ₹14.67 per kilogram since the beginning of August. These figures highlight the uneven impact of the price hike across different regions, with some areas experiencing sharper increases than others. The government emphasized that the rise in sugar prices could not be linked to ethanol production. It clarified that the proportion of sugar diverted for ethanol manufacturing had decreased from roughly 12% in 2022-23 to about 9% in 2025-26. Furthermore, nearly three-quarters of the ethanol produced domestically now originates from grains, especially maize. A senior official reiterated that the government had introduced a restriction preventing sugar industries from using sugarcane juice for ethanol production, reinforcing its stance against such a connection. Experts suggest that increased market supply would likely lead to a decline in sugar prices. Lal Singh Gangwar, a principal scientist at the Indian Institute of Sugarcane Research, noted that a 10% increase in retail prices during the festive season is typical. He also pointed out that rising input costs for farmers and sugar mills, driven by higher diesel and fertilizer prices due to conflicts in West Asia, contributed to the price surge. Gangwar dismissed any association between ethanol production and sugar prices, underscoring the government's position. To address the issue, the government has enforced a stock limit of 400 tonnes on sugar dealers nationwide from August 1 to November 30. Starting September 1, bulk consumers will be restricted from holding sugar stocks exceeding 15 days of their consumption. Additionally, the government approved the duty-free import of 10 lakh metric tonnes of raw sugar to boost domestic availability. These measures aim to enhance supply and curb inflationary pressures on the market.