Sugar Prices Spike Temporarily; Supply Adequate for Ethanol Production

Recent weeks have seen a noticeable rise in sugar prices. On July 20, the price stood at ₹48.18 per kilogram, climbing to ₹55.70 per kilogram by August 20 – an increase of roughly 15.6 percent within a single month.

Authorities explained that the surge is driven by short‑term supply constraints, heightened pre‑festival demand, and crop damage caused by unexpected weather events. Global supply tightness, speculative trading, and hoarding by certain industry segments have also contributed to the upward pressure.

Despite the temporary jump, the overall supply remains comfortable. The government emphasized that the reduction in the sugarcane harvest, caused by red rot, top‑borer infestations, and excessive rainfall, does not threaten the ability to meet domestic needs.