Why Has Sugar Turned Bitter Before the Festive Season? India Forced to Import After 10 Years

New Delhi: Even before the beginning of the festive season, the kitchen budget of common people has started deteriorating. Sugar prices have increased rapidly in the last two weeks. While some time back sugar was available at around Rs 45 per kg, now in many places its price has reached Rs 60 to Rs 65 per kg or even more. At a time when the demand for sweets is going to increase, the inflation of sugar has increased the concern of both shopkeepers and customers.

What is the impact of reduction in production?

There is not just one reason responsible for the increase in sugar prices. In the last few years, there have been ups and downs in sugar production in the country. About 328 lakh tonnes of sugar was produced in 2022-23, which came down to about 261 lakh tonnes in 2024-25. The production in the current 2025-26 season is estimated to be around 293 lakh tonnes.

In major sugarcane-producing states like Maharashtra and Karnataka, the crop was affected due to weather. Apart from this, diseases like red rot and top borer in sugarcane also affected the production.

Were questions also raised regarding ethanol?

Amidst the inflation of sugar, the opposition has also made ethanol production an issue. It was alleged that production was affected due to sugarcane being used to prepare ethanol instead of sugar. However, the government says that the use of sugarcane for ethanol has reduced compared to before and a large amount of ethanol in the country is now being made from grains like corn.

Was stock reduced before festivals?

The reduction in production has also affected the initial reserves of sugar. Available stocks are expected to be low before the start of the new sugar season. This is the reason why the pressure on prices has increased with the fear of increase in demand in the market.

According to the government, sugar prices have also increased in the international market. The government is also alert about hoarding and betting.

Government's strictness on hoarders

To keep prices under control, the central government has set a limit on the storage of sugar. Stock limit has been imposed for dealers, while there are also preparations to tighten the storage of bulk consumers.

The government has also allowed import of 10 lakh tonnes of duty free sugar till October 31. After about 10 years, India has needed to import sugar. It is expected that these steps will bring some control on sugar prices during festivals.