Sugar Price Hike: Wholesale Rates Climb to ₹4,750 Per Quintal Amid Supply Crunch
Sugar Price Hike: Wholesale Rates Climb to ₹4,750 Per Quintal Amid Supply Crunch
Sugar prices have continued to climb in the wholesale market, with rates increasing by another ₹50 to ₹100 per quintal, taking the price to around ₹4,700–₹4,750 per quintal. The latest surge is being attributed to lower domestic production, an inadequate monthly sales quota, and concerns over shrinking sugar stocks ahead of the next crushing season.
According to market traders, sugar prices have risen by more than ₹650 per quintal during July. The increase comes as sugar production this season has fallen short of expectations, while the government’s July sales quota of 22 lakh tonnes is considered insufficient to meet current market demand.
Industry sources say sugar mills are currently selling only the quantity permitted under the government-allotted quota. At the same time, traders are purchasing larger quantities amid expectations of further price increases, resulting in a tighter supply situation in the wholesale market.
To ease the pressure on prices, traders have urged the Central Government to announce an additional sugar quota of at least 2 lakh tonnes. They believe the market’s direction will largely depend on how quickly the government reviews sugar availability and decides on releasing extra stock.
Production and Stock Outlook
Industry estimates indicate that India began the 2025-26 sugar season with an opening stock of around 47 lakh tonnes. Domestic sugar production during the season is estimated at 279 lakh tonnes, while 8 lakh tonnes have been exported. Annual domestic consumption is expected to reach 285 lakh tonnes, leaving a projected closing stock of about 33 lakh tonnes by October 2026.
Market experts say concerns over lower carry-forward stocks and uncertainty surrounding the upcoming crushing season are likely to keep sugar prices firm in the coming weeks unless additional supplies are released into the market.
