Sugar Price Hike: The festive season is upon us. Preparations for Diwali are in full swing in every household, but during this sweet festival, rising sugar prices could severely impact the common man’s budget. Within just six days, sugar prices have risen by 13 to 17 percent in major states across the country. This season sees a huge demand for sugar, from households to confectioners, but supply remains extremely low. This demand-supply mismatch has led to this dramatic price surge.
What caused such a significant market shortage?
According to agricultural expert G.K. Sood, the country is currently facing a sugar deficit. While an extra 300,000 tons of sugar was brought in from abroad to ease the situation, this measure had minimal impact. Additionally, stringent stockpiling regulations have negatively affected the trading sector. Sugar mills usually start their crushing operations early in the year, but that didn’t happen this time around. Sugarcane harvests in key producing regions such as Maharashtra and Karnataka aren’t quite ready yet, which has caused considerable delays in getting fresh sugar into the marketplace.
How did the government’s major intervention affect the situation?
The national government has implemented several key measures to tackle the sugar emergency. To boost market availability, the government has greenlit duty-free importation of 1 million tons of unrefined sugar. Strict caps on inventory have been placed on retailers. Bulk purchasers have also been barred from acquiring sugar through regular market channels to prevent stockpiling. Even with these controls in place, the government hasn’t seen any quick fixes. A government representative shared with Hindustan Times that officials are concerned about another major price increase happening before Diwali.
Farmers’ new demands made matters more difficult
As sugar costs continue climbing, sugarcane growers have become more vocal with their requests. They contend that their production expenses have gone up substantially, so sugarcane rates need to rise as well. Their key request is that the minimum support price (MSP) for sugar, now at Rs 31 per kg, be raised to Rs 50 per kg.
To tackle this challenge, a lengthy discussion took place on October 12th at Delhi’s Pusa campus. Union Agriculture Minister Shivraj Singh Chouhan, Food Minister Prahlad Joshi, and 80 to 90 delegates from multiple farmer groups participated.
Skyrocketing prices from UP to Maharashtra
In Uttar Pradesh, the ex-mill rate, which was Rs 4,600 per quintal on October 6th, increased by 13 percent to Rs 5,200 by October 12th. According to a reports, the situation is similar in Maharashtra. Sugar prices there have jumped by a whopping 17 percent, reaching Rs 5,100 per quintal. Local traders clearly state that the market is receiving far less goods than expected for the festive season.
Following the nearly three-hour discussion, the central government decided to form a high-level joint committee within a week. This committee will specifically address the concerns of farmers from Maharashtra and Karnataka. The new 2026-27 sugar season begins on October 1st. Therefore, if the farmers’ new demands are met, consumers may have to purchase sugar at a higher price in the coming days.