The Story So Far: Retail and wholesale prices of sugar witnessed about 40% increase, in some States up to 50%, compared to the same time of last year. In eight States such as Uttarakhand, Punjab, Madhya Pradesh and Odisha, the price for a kilogram of sugar touched more than ₹65. As on August 23, Odisha recorded the highest price, ₹67.4 for a kilogram, which was ₹55 a week ago, ₹50.78 a month ago and ₹46.89 on August 23, 2025.
Even as the Opposition raised the issue last week, the Government was unable to curb the price rise. The Opposition even blamed the diversion of sugarcane for making ethanol as the reason for the sharp increase of the daily essential product. The farmers’ groups argued that the price rise was artificially created by big traders ahead of the festive season. The Government, in its response, said it is monitoring the situation closely and added that a combination of factors, including lower-than-expected domestic production, increased demand ahead of the festive season, weather-related damage to the sugarcane crop, tightening global sugar supplies and speculation and hoarding by some sections of the industry are the reasons for the price hike. The Union Commerce Ministry also issued a notification allowing import of 10 lakh metric tonnes (LMT) of sugar till October 31, 2026.
Current Prices and Variations
The all India average price for a kilogram of sugar was ₹46.3 on August 23, 2025. But as on August 23, 2026, the price increased to ₹62.47, an increase of 34.92%. The increase started within a month as on July 23 of this year, the price was ₹48.62, meaning that the price increased 28.49% in 30 days. Similarly, the wholesale rate for 100 kilograms of sugar on August 23 was ₹,5801.29. A month ago, the rate was ₹4,510.76 and last year, on the same date, it was ₹4,313.32. About 18 States and Union Territories witnessed an increase of 40% to 50% increase in sugar price over the year. In Uttarakhand, where the price on August 23 was ₹67 for a kilogram of sugar, the second highest retail price, it was ₹45 in last year, on the same date. In west Bengal, it was ₹66.17 and ₹47.5, in Rajasthan ₹65 and ₹43.33, in Madhya Pradesh ₹65.38 and ₹44.98 and in Delhi it was ₹65 and ₹45 respectively.
The Opposition’s Allegations and Union Government’s Claims
The Opposition, which has been critical of the Government’s ethanol blending programme in fuels, blamed that the diversion of sugarcane for ethanol production caused the increase in sugar prices. Aam Aadmi Party chief Arvind Kejriwal said diverting sugarcane towards ethanol production has reduced sugar output, pushing sugar prices up by ₹20 per kg in just 17 days. Congress general secretary Jairam Ramesh demanded an immediate review of the E20 policy and sought the provision of non-ethanol petrol for consumers. He said the people are paying the price for both expensive food and expensive travel because of the wrong decisions of the “arrogant Narendra Modi government.”
In a statement issued on August 20, in response to the Opposition’s charges, the Union Consumer Affairs, Food and Public Distribution Ministry said it is closely monitoring the situation and has taken a series of measures to ensure adequate availability of sugar and stable prices for consumers. It maintained that rise in sugar prices could not be attributed to ethanol.
“It is incorrect to attribute the recent increase in sugar prices to diversion of sugar for ethanol production. In fact, the share of sugar diverted for ethanol has declined from around 12% in 2022-23 to around 9% in 2025-26. Moreover, nearly three-fourths of the ethanol produced in the country now comes from grains, particularly maize,” the statement said. The Union Government has also imposed a stock limit of 400 tonnes on sugar dealers across the country from August 1 to November 30 and from September 1, bulk consumers will not be permitted to hold sugar stocks exceeding 15 days of consumption.
Principal scientist at the Indian Institute of Sugarcane Research, an Indian Council of Agricultural Research (ICAR) institution based in Lucknow, Lal Singh Gangwar told The Hindu that an increase of 10% in the retail prices of sugar around the festive season used to be normal. According to him, the input cost for farmers and sugar mills have also gone up in the season because of the increase in diesel and fertilizer prices due to the war in West Asia. “Last year, the government has put a cap that no sugar industry can use sugarcane juice for the production of ethanol,” he added.
Scam, say Farmers Unions
A sugarcane farmer from Maharashtra and leader of All India Kisan Sabha Ajit Nawale said the Union Government’s policies that favoured big retail chains have resulted in such a steep increase in sugar price. He said even according to the Government estimates, the country produces around 320-340 LMT of sugar annually and the domestic consumption is around 280-290 LMT.
“So it is wrong to blame the decrease in production for the increase in prices,” he said adding that the stock of sugar at present is around 38 LMT, which it is less than last year of around 42 LMT. “It is less, but not very less which could create such a sharp increase of 40% in the retail prices. The harvest and crushing of this year is about to begin in September-0October. So whatever is less, could be easily managed,” he said adding that the Union Government failed to control the big retailers who have started hoarding and black marketeering to maximise their profits ahead of the festive season. “This is a scam. They must act on these big traders,” he said.
Published – August 24, 2026 10:38 am IST
