Festive Demand and Low Stocks Push Indian Sugar Prices Above Rs 5,000
As India gears up for the upcoming festive season, sugar prices have surged past the Rs 5,000 per quintal mark, reflecting a confluence of strong consumer demand and dwindling trader inventories. Despite the government’s recent steps—such as permitting duty‑free raw‑sugar imports until the end of October and revising the sales‑quota schedule—the market remains firm.
Private mills in Uttar Pradesh have signalled a refusal to lower prices, a decision that has reverberated across the country. Several exporters in Maharashtra and Gujarat have followed suit, lifting their rates and contributing to a nationwide price rise of over two percent since the week began.
Two major festivals, Krishna Janmashtami and Ganesh Chaturthi, have amplified demand for sweets and confectionery, prompting traders to adopt a cautious buying approach. This has resulted in a “hand‑to‑mouth” situation where supply barely satisfies the heightened consumption.
Key retail and wholesale price snapshots across major metros include: - Noida: Rs 58‑62 per kg retail, Rs 5,150‑5,300 per quintal wholesale - Delhi: Rs 60‑62 per kg retail, Rs 5,100‑5,250 per quintal wholesale - Mumbai: Rs 64‑66 per kg retail, Rs 5,100‑5,200 per quintal wholesale - Kolkata: Rs 65‑70 per kg retail, Rs 5,200‑5,350 per quintal wholesale - Bengaluru: Rs 58‑62 per kg retail, Rs 5,150‑5,300 per quintal wholesale
Supply chain bottlenecks, especially a shortage of transportation trucks, have compounded the pressure on prices. Food policy expert Devinder Sharma cautions that market sentiment is a critical driver and urges the authorities to enforce strict anti‑hoarding measures while keeping a watchful eye on price listings posted by quick‑commerce platforms.
Historically, Maharashtra’s sugar has been cheaper by about Rs 200 per quintal compared to Uttar Pradesh’s output. Recent data, however, shows the gap widening to more than Rs 600 per quintal, as mills in both states align on higher pricing.
The government’s revised quota system now requires mills to sell 40 % of their allocated sugar in the first week of a fortnight and the rest in the following week. Coupled with the extension of duty‑free raw‑sugar imports to 31 October and permission for export‑bound sugar to be sold domestically, these measures have yet to reverse the upward price trajectory driven by festive demand and low stocks.