New Delhi: Sugar has become significantly more expensive in Indian markets, with retail and wholesale prices rising sharply in recent weeks as concerns over domestic supplies grow.
Retail sugar prices reached ₹55.7 per kg on August 20, up from ₹46.3 per kg a year earlier, according to Department of Consumer Affairs data. The rise represents an increase of around 20 per cent over the past year.
Prices rise sharply in recent weeks
The increase has accelerated considerably over the past month. Retail prices stood at ₹48.2 per kg a month earlier and ₹50.9 per kg a week before reaching the latest level.
Wholesale prices have also climbed, adding to concerns for consumers, food businesses and industries that use sugar as a key input.
The sudden rise has been linked largely to expectations of tighter domestic supplies.
Weak rainfall raises supply concerns
India’s major sugarcane-growing states have faced concerns over weak rainfall and crop damage. Any reduction in sugarcane availability could affect sugar production and tighten supplies in the domestic market.
Market expectations about future availability have therefore contributed to the recent price surge.
The quantity of sugar diverted towards ethanol production, meanwhile, has remained relatively steady over the years, according to the report.
The sharp increase in sugar prices could put additional pressure on household budgets if elevated rates persist. Consumers and businesses are now watching crop conditions and supply trends closely as the market heads into the next production cycle.