Sugar prices soar ahead of Diwali and Chhath, festive sweetness turns costlier

New Delhi (The Uttam Hindu): Just before the major festivals like Diwali and Chhath Mahaparva, inflation has hit the pockets of common consumers twice. After ghee and butter, now the continuously rising prices of sugar have spoiled the monthly kitchen budget of common families. From traditional dishes and sweets to daily tea, the sweetness of everything has become expensive during festivals. Within the last one month only, the price of sugar has increased by more than Rs 4 per kilogram in both retail and wholesale markets, due to which household expenditure has increased significantly during the festive season.

Prices increased by Rs 13 in 1 year, average retail price reached ₹59.50 per kg

According to the official data released by the Ministry of Consumer Affairs, the average retail price of sugar in the country has jumped to Rs 59.50 per kg. Whereas, its average rate in the wholesale market has been recorded at Rs 55.40 per kg. In the last one month, there has been an increase of more than Rs 4 per kg in both the markets. If compared to the same period last year, then on an annual basis, sugar has become costlier by Rs 12 to 13 per kg. A year ago, sugar was available at Rs 46.50 in the retail market and Rs 43.23 per kg in the wholesale market.

Prices at record levels in metros, Kolkata leads the country

A sharp rise is being seen in the retail rates of sugar in the major metros of the country. As per the data till November 3, the retail price of sugar in Kolkata, the capital of West Bengal, has reached the highest at Rs 65 per kg, whereas last year at the same time sugar was being sold here at Rs 50 per kg. The price of sugar in the national capital Delhi has also risen to Rs 64 per kg, which was Rs 46 a year ago. Sugar is being sold at Rs 61 per kg in Mumbai, the financial capital of the country, where last year it was available at Rs 45 per kg.

Low production and festive demand worsened the situation, leading the government to take strict measures

According to experts, the main reason for this rise in sugar prices is that production in the last crushing season was much lower than expected. Additionally, heavy domestic demand during the festive season, damage to the sugarcane crop due to weather, weak international supply, and fears of local hoarding have also put significant pressure on prices. To balance the market and prevent artificial shortages, the government has taken several strict administrative measures, such as setting stock limits for sugar mills and traders, increasing imports, and monitoring the market daily. Furthermore, crushing operations in mills have also been started ahead of schedule.

8.45 lakh tonnes produced in the new season, relief expected from increased supply

Amidst this period of inflation, the good news is that production work has started rapidly under the new marketing season 2026-27 of sugar. According to the data of National Federation of Cooperative Sugar Factories (NFCSF), a total of 8.45 lakh tonnes of sugar has been produced by 152 sugar mills of the country till 30th October under the crushing season which started from 8th October. The new production is expected to improve the arrival and availability of sugar in the open market in the coming days. However, market experts believe that the actual softening of prices will depend on the balance of the crushing speed of the mills and the festive demand in the coming days.