Sugar prices in India have increased by about 20% since August 7. The retail price has moved from around ₹52 to ₹62 per kg in just 12 days. The rise comes before the festive season, when sugar demand usually goes up.Key HighlightsSugar prices have risen nearly 20% in 12 days.Retail prices moved from ₹52 to around ₹62 per kg.Low sugar production is a major reason for the rise.Sugar stocks may fall to their lowest level since 2010.Why Are Sugar Prices Rising?The sugar price hike in India is linked to lower production and low stocks. Sugar production for the current season was expected to reach about 342 lakh metric tonnes (LMT). But actual production has been much lower at around 308 LMT.The government also allowed sugar exports earlier in the season. A total export limit of 20 LMT was approved in two phases. By the time exports were stopped in May, around 8 LMT had already been exported.Another reason is ethanol production. Around 28 LMT of sugar was diverted for ethanol. This left about 280 LMT for domestic use.The lower supply has increased concern in the market.Sugar Stocks May Fall to Record LowThe India sugar market update shows another major concern. Sugar stocks at the end of the current season, on September 30, are expected to be around 32 LMT.The normal stock level needed is about 60 LMT. Last season, the closing stock was around 47 LMT. If the estimate is correct, this year could see the lowest closing stock since 2010.India uses about 24 LMT of sugar every month. This has raised worries about supply during the coming festive season.“There is significant speculation in the market regarding the quantity of sugar available at the end of the sugar season,” a market expert said.Government Takes Steps as Festive Demand GrowsThe government has assured people that enough sugar will be available. It has also placed stockholding limits on sugar dealers across the country until November 30, 2026.The sugar prices festive season concern is growing because demand may rise during festivals. More sugar is used to make sweets, desserts and other festive foods.Market analysts expect prices to remain under pressure in the coming days. The government will need to closely watch stocks, supply and prices to prevent the sugar price increase from becoming a bigger burden for consumers.Also Read : Why India Extended Sugar Export Ban Till 2026 - And Which Shipments Are Still Allowed
