India's sugar prices surge amid low output and festival demand
India
Sugar prices in India have shot up, averaging ₹64.24 per kg as of August 30, up 30% from last month and 38.63% higher than last year.
Some cities are even seeing prices over ₹70 per kg.
The main reasons? Less sugar is being produced this season; demand is up thanks to festivals, and mills are holding back supplies.
Government approves duty-free raw sugar imports
Production for 2025-26 is expected to be about 306 lakh metric tons, which is 11% less than earlier estimates because crops got hit by disease and heavy rains.
To help calm things down, the government has approved duty-free imports of raw sugar and set stricter stock limits to fight hoarding.
While ex-mill prices dropped after these steps, retail prices are still high since older expensive stock is still in stores.