Government Action on Rising Sugar Prices
Sugar is still a highly important part of the diet, especially for those doing very hard physical work. In India, sugar has high importance.
According to a PIB report, sugar prices have increased in recent weeks, from ₹48.18 per kg on 20 July 2026 to ₹55.70 per kg on 20 August 2026. The Government is closely monitoring the situation and has taken a series of measures to ensure adequate availability of sugar and stable prices for consumers.
Rise in Sugar Prices Cannot Be Attributed to Ethanol.
It is incorrect to attribute the recent increase in sugar prices to the 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 present increase in sugar prices is due to 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.
Sugar Production Lower Than Initial Estimates.
Sugar production during the current season is expected to be around 306 LMT, compared to the initial estimate of around 343 LMT by sugarcane-growing States.
Despite the lower-than-estimated production, adequate sugar stocks are available in the country to meet domestic demand until the new crushing season begins in October.
Sugar Prices Are Rising Globally Too.
The tightening of sugar supplies is a global phenomenon and is not limited to India.
The global sugar deficit for 2026-27 is estimated at around 33 LMT. Concerns over weather conditions have further affected the global outlook.