Sugar prices in India have surged by nearly 17% in the past month, reaching all-time highs with average ex-mill prices climbing to ₹44 per kg, about 14% higher than a year ago. Retail prices have also hit records, with sugar selling at ₹47 per kg in Delhi and ₹50 per kg in West Bengal. This sharp increase is attributed to lower production estimates for the current season, which fell to 27.9 million tonnes from an initial estimate of 30.9 million tonnes, and uncertainty surrounding the impact of El Nino on upcoming sugar seasons.
In response to these elevated prices and to ensure adequate supplies, the Indian Sugar & Bio-energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories Ltd. (NFCSF) have agreed with the government to start the 2026–27 sugar season earlier than usual. This proactive measure aims to bring fresh sugar into the market sooner, strengthen domestic supplies, and calm market concerns, despite industry bodies asserting that current stock levels are sufficient and the price surge is not supported by fundamental demand-supply imbalances.
The government has already taken steps to curb rising prices, including imposing stock limits on sugar dealers effective July 28, which will remain until November 30, 2026. Under these limits, dealers cannot hold stock for more than 30 days or exceed 4,000 quintals at any location. Earlier, India had banned sugar exports in May after production shortfalls. The current high prices are expected to significantly boost the financial performance of sugar mills, with estimates suggesting an additional revenue of around ₹11,000 crores if current prices persist into the next season.
