Lucknow. Be it sipping tea or tasting sweets, these days the rising prices of sugar have increased the concern of the common man. In many parts of the country, retail prices of sugar have increased rapidly and the market price is expected to cross Rs 65 per kg. Amidst continuously rising prices, the Central Government has given permission to import 10 lakh metric tonnes of raw sugar without import duty to increase domestic availability.
It is being told that after almost a decade, India has to import sugar to meet the domestic demand. The purpose of this decision of the government is to control prices by increasing supply in the domestic market.
Prices increased by about 20 percent in a month
Sugar prices have seen a rise in the month of August. According to data from the Department of Consumer Affairs, the average price of sugar in the retail market on August 20 was around Rs 55.70 per kg, whereas a month ago it was around Rs 48.18 per kg. That means there has been a difference of about 20 percent in the price within a month.
On August 20, 2025, the price of sugar was said to be around Rs 46.30 per kg. According to market experts, the current rise is related to increasing pressure on domestic supply and reduction in production.
decline in domestic production
The main reason for the rise in sugar prices is believed to be the increasing pressure regarding availability in the country. According to Ketan Patel, Vice President of National Federation of Co-operative Sugar Factories Limited, an organization representing sugar mills, sugar production in the country was estimated to be around 32 million tonnes in the sugar year 2025-26, but the actual production is estimated to be around 30 million tonnes only.
This reduction in production has come at a time when the demand for sugar in the domestic market remains constant. This increased the pressure on the stock available in the market and led to a rise in prices.
The weather is also making it difficult
The weather is also affecting the prices of sugar. Last year, sugarcane crop was affected in many areas due to excessive rain. At the same time, concerns are being raised about the weak monsoon this year. There is a possibility of lack of rain affecting the sowing of sugarcane and the upcoming crop.
Apart from this, the possible situation of El Nino also remains a cause of concern for the agriculture sector. If rainfall remains weak as predicted, sugarcane cultivation may be affected and pressure on sugar production may increase in the coming years.
The spread of saffron disease in CO-0238 sugarcane variety, which gives high production in Uttar Pradesh, has also come to light. Disease and weather-related challenges in the sugarcane crop can affect sugar production.
Increased anxiety before the festive season
The festive season is going to start in the coming days. Consumption of sugar in sweets and other food items increases during festivals like Rakshabandhan, Ganesh Chaturthi, Dussehra and Diwali. In such a situation, if the supply does not remain normal with the increase in demand, there is a possibility of further pressure on prices. In view of this situation, the government is making efforts to increase the availability of sugar in the domestic market and control the prices.
Government took many steps
To control rising prices, the Central Government has decided to ban the export of sugar, so that adequate stock is available in the domestic market. Along with this, stock limit has also been imposed regarding storage of sugar with wholesale traders.
Now, with duty-free import of 10 lakh metric tonnes of raw sugar allowed, additional supply is expected to come into the domestic market. The government’s effort is to ensure that sufficient sugar is available in the market to meet the increased demand during festivals and to prevent unnecessary rise in prices. However, the level at which sugar prices remain in the coming days will depend on domestic production, weather, sugarcane crop and supply situation in the market.