The Story So Far: Retail and wholesale prices of sugar have risen by about 40%, in some States even up to 50%, from the prices in the corrersponding period of last year. In eight States such as Uttarakhand, Punjab, Madhya Pradesh, and Odisha, the price touched more than ₹65 a kg. As on August 23, Odisha recorded the highest price, ₹67.4 a kilogram, rising from ₹55 a week ago, ₹50.78 a month ago, and ₹46.89 on August 23, 2025.

Even as the Opposition raised the issue last week, the Union government has been unable to curb the price rise. The Opposition even blamed the diversion of sugar cane for making ethanol as the reason for the sharp increase. The farmers’ groups argued that the price rise was artificially created by big traders ahead of the festive season. The government, in its response, said it is monitoring the situation closely, and cited as reasons a combination of factors, including lower-than-expected domestic production, increased demand ahead of the festive season, weather-related damage to the sugar cane crop, tightening global sugar supplies, and speculation and hoarding by some sections of the industry. The Union Commerce Ministry issued a notification allowing import of 10 lakh tonnes of sugar till October 31, 2026.