Sugar prices have risen sharply ahead of Diwali 2026, putting additional pressure on household budgets during the festive season. Prices in major sugar-producing states have increased by around 13% to 17% within six days, as demand from households and sweet manufacturers has risen while market supplies remain limited.
The mismatch between demand and availability has raised concerns about further price increases before Diwali. The government has introduced measures to improve supply and control stockpiling, but the market has yet to see an immediate improvement.
Why Are Sugar Prices Rising Before Diwali?
According to agricultural expert G.K. Sood, the country is facing a shortage of sugar in the market. An additional 3 lakh tonnes of sugar was imported from abroad in an effort to ease the shortage, but the move had limited impact on prices.
Strict stock limits have also affected traders, while delays in the start of sugarcane crushing operations have slowed the arrival of fresh supplies. Sugarcane crops in major producing states such as Maharashtra and Karnataka are not yet ready for harvesting, adding to the pressure on availability.
With Diwali approaching, demand from households, sweet shops and confectioners has increased, further contributing to the rise in prices.
Government Steps to Control Sugar Prices
The central government has introduced several measures to improve sugar availability and prevent excessive stockpiling. These include approval for duty-free imports of 10 lakh tonnes of raw sugar and restrictions on the quantities retailers can hold.
Bulk buyers have also been restricted from purchasing sugar through regular market channels to discourage stock accumulation.
Despite these steps, the measures have not produced an immediate solution. According to a government representative quoted by Hindustan Times, officials are concerned about the possibility of another significant price increase before Diwali.
Sugar Prices Rise in Uttar Pradesh and Maharashtra
Sugar prices have increased considerably in two major producing states over the six-day period from October 6 to October 12.
In Uttar Pradesh, the ex-mill price rose from ₹4,600 per quintal on October 6 to ₹5,200 per quintal on October 12, representing an increase of approximately 13%.
Maharashtra has also recorded a substantial increase. Sugar prices in the state reportedly climbed by around 17%, reaching ₹5,100 per quintal. Traders have attributed the situation to lower-than-expected supplies entering the market during the festive period.
The increase in ex-mill prices may put additional pressure on the sugar supply chain, although the final retail price paid by consumers can vary.
Sugarcane Farmers Demand Higher Prices
Rising production costs have prompted sugarcane farmers to demand better prices for their crops. Farmers are seeking an increase in the minimum sugar price from ₹31 per kg to ₹50 per kg.
On October 12, a meeting was held at the Pusa campus in Delhi to discuss issues related to sugar prices and farmers’ demands. Union Agriculture Minister Shivraj Singh Chouhan, Food Minister Prahlad Joshi and around 80 to 90 representatives from different farmer organisations participated in the discussions.
Following the nearly three-hour meeting, the central government decided to establish a high-level joint committee within a week. The committee is expected to examine the concerns of farmers from Maharashtra and Karnataka.
The new sugar season for 2026-27 began on October 1. With farmers seeking higher prices and supplies remaining under pressure, the direction of sugar prices in the coming weeks will depend on market availability and the outcome of the government’s discussions.
Disclaimer
This article is intended for general informational purposes and is based on the market figures and reports cited in the supplied information. Sugar prices can vary by location, market conditions and stage of the supply chain. Government measures and proposed price changes may also be subject to revision. Readers should consult official announcements and reliable market sources for the latest information before making financial or business decisions.