Sugar Price Hike: Before Navratri and Diwali, sugar prices are increasing again. As India gears up for the festive season, a new worry related to inflation has surfaced for the public. Sugar prices are on the rise, affecting the costs of jaggery and sweets. In July 2026, sugar prices increased by 2.7% compared to a 0.9% rise in overall retail inflation during the same period.

With Navratri, Dussehra, and Diwali approaching, the escalating prices of sugar and its derivatives could strain families’ food budgets as demand for sweets surges during festivals, further pressuring market prices.

1. Sugar prices surge significantly:

– In July, sugar inflation spiked to 2.73%, up from 0.63% in June and 0.44% in May.
– On an annual basis, sugar prices rose by 4.92% in July, higher than the 2.17% in June.
– Notably, July’s sugar inflation surpassed the overall retail inflation rate of 4.44%.

2. Jaggery prices also on the rise:

Jaggery prices increased by 1.76% in July, compared to around 1% in May and June. Annual jaggery inflation reached 6.28% in July, up from 5.31% in June. Prices of sweets made without milk also saw continuous increases, hitting 0.63% in July.

3. Sugar prices surpass Rs 60 per kg

Ahead of festive demand, sugar prices have surged from Rs 48 to over Rs 60 per kg. Despite a 0.5% decrease in sugarcane sowing compared to last year, future price trends will depend on production and supply conditions. Over the past decade, sugar prices rose during festivals only in 2016, 2021, and 2022, while dropping in the remaining years.
This year is different, as prices are already climbing before the festive season, potentially impacting the food budgets of regular households.

According to data from the Ministry of Consumer Affairs, the average retail price of sugar across the country reached ₹62 per kg in September, up from Rs 47 per kg in June. During the same period, the average wholesale price of sugar also increased to Rs 5,747 per quintal, up from Rs 4,350 per quintal in June. This sharp increase in sugar prices has made it difficult for packaged food companies to estimate costs, especially those whose products use large quantities of sugar. A senior official of a major packaged food company told the Times of India that there is a significant gap between the sugar price considered in budget preparation and the current procurement price.