New Delhi: The Centre has stepped up measures to check the recent surge in sugar prices and ensure adequate availability during the upcoming festive season, with retail prices rising from ₹48.18 per kg on July 20 to ₹55.70 on August 20.
The government said the price rise was not linked to diversion of sugar for ethanol production, noting that the share diverted for ethanol had declined from around 12% in 2022-23 to 9% in 2025-26. Nearly three-fourths of ethanol production now comes from grains, particularly maize.
According to the government, domestic sugar production is expected to be around 306 lakh metric tonnes (LMT), below the initial estimate of 343 LMT, due to crop diseases, excess rainfall and waterlogging. However, it said stocks are sufficient to meet domestic demand until the new crushing season begins in October.
The government also attributed the price rise to increased festive demand, tighter global supplies, weather-related crop damage, speculation and hoarding. Global sugar prices have risen more than 16% since June 30.
To curb hoarding, a 400-tonne stock limit has been imposed on dealers until November 30, while bulk consumers will face a 15-day stock limit from September 1.
The Centre has also approved duty-free import of 10 LMT of raw sugar and advised mills to begin crushing from October 15.
