Government Assures Adequate Sugar Supply Amid Price Rise

The government has assured consumers that the country has sufficient sugar stocks to meet domestic demand, despite lower-than-expected production this season. The assurance comes after sugar prices increased from around ₹48 per kg on July 20 to nearly ₹55 per kg on August 19.
The Ministry of Consumer Affairs, Food and Public Distribution said it is closely monitoring sugar prices and has taken measures to ensure availability and control price fluctuations.

The government clarified that the recent price rise is not due to increased diversion of sugar for ethanol production. Sugar diversion for ethanol has actually declined from about 12% in 2022-23 to nearly 9% in 2025-26. Nearly three-fourths of the country’s ethanol production now comes from grains, particularly maize.
According to the ministry, several factors have contributed to the rise in sugar prices, including lower domestic production, higher demand ahead of the festive season, weather-related damage to sugarcane crops, tighter global supplies, and alleged speculation and hoarding.
Sugar production for the current season is expected to be around 306 lakh tonnes, against the initial estimate of 343 lakh tonnes.

To curb hoarding, the government has imposed a 400-tonne stock limit on sugar dealers from August 1 to November 30. From September 1, bulk consumers will also be restricted to holding sugar stocks equivalent to no more than 15 days of consumption.
Sugar mills have been advised to begin crushing operations from October 15. The move is expected to increase October production from the usual 3–4 lakh tonnes to over 10 lakh tonnes, improving sugar availability during the festive season.