Sugar prices have climbed sharply across several parts of India over the past year, with consumers in around 18 States and Union Territories facing increases of ₹10 to ₹18 per kilogram. The Union government says it is closely monitoring the situation and has taken measures to ensure adequate availability and contain further price pressure.
On August 21, Odisha recorded the highest retail sugar price at ₹64.72 per kilogram, an increase of ₹17.80 compared with the same date last year. Madhya Pradesh and Punjab followed, while consumers in Assam, Delhi, Goa, Kerala, Meghalaya, Tripura and West Bengal were also paying more than ₹60 per kilogram.
The national average price stood at ₹58.23 per kilogram on Friday.
Madhya Pradesh Sees Sharp Recent Increase
The rise has also accelerated in some States over the past few weeks. Compared with July 21, Madhya Pradesh recorded an increase of ₹15.70 per kilogram, followed by Punjab, where sugar prices rose by ₹14.67.
Looking at the week on week movement, Madhya Pradesh again recorded the steepest increase, with prices rising by ₹11.82 per kilogram. Odisha followed with an increase of ₹10.67.
The broader national trend has also been notable. According to the Union Ministry of Consumer Affairs, Food & Public Distribution, the average sugar price increased from ₹48.18 per kilogram on July 20 to ₹55.70 on August 20.
Government Rejects Ethanol Explanation
The government has pushed back against claims that the increase is primarily linked to the diversion of sugar towards ethanol production.
The Ministry said that the share of sugar diverted for ethanol had actually declined, from around 12% in 2022-23 to about 9% in 2025-26. It also highlighted that nearly three-fourths of the country ethanol production now comes from grains, particularly maize.
According to the government, therefore, attributing the current sugar price increase to ethanol diversion would be misleading.
What Is Driving the Price Rise?
The government explanation points towards a combination of factors, including crop damage, lower sugar production and increased demand during the festival season.
A reduction in production can tighten domestic supplies, while higher seasonal demand can add further pressure to retail prices. At the same time, regional differences suggest that consumer are experiencing the impact unevenly across the country.
The sharp differences between States also underline the importance of looking beyond the national average when assessing the actual burden on households.
Government Says It Is Monitoring Prices
With sugar prices rising rapidly in several markets, the Centre says it is taking steps to maintain adequate availability and keep prices stable.
However, the continuing increase means consumer will likely be watching retail prices closely, particularly as festival related demand picks up.
For households already dealing with higher food costs, sugar is another everyday commodity where even a seemingly small increase per kilogram can add to monthly expenses.
The Bigger Question
The government explanation puts the focus on production losses and seasonal demand, while rejecting ethanol diversion as the main cause. But understanding the full picture requires examining production estimates, stock levels, wholesale retail margin, supply chains and regional market conditions alongside the government assessment.
For now, the numbers tell a clear story- sugar has become significantly more expensive in several parts of India, and the government is under pressure to ensure that the price rise does not intensify during the festival season.