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Sugar Prices in India Rise to ₹60.61/kg: Why a Fourfold Production Jump Hasn't Brought Relief

Sugar Prices in India Stay High Even as Production Rebounds Fourfold

Rising retail rates defy a faster start to crushing.

Posted
Nov 10, 2026
Category
Recent Events

India's sugar bill has become more expensive even as mills report a rapid start to the new crushing season. The Department of Consumer Affairs listed the all-India average retail price at ₹60.61 per kg for November 9, 2026, compared with ₹59.50 in figures reported for November 3. For shoppers, sugar prices in India remain stubbornly high despite a burst of fresh factory output.

The contrast is real, but it needs context. A strong opening month does not necessarily mean the country will produce a record crop over the full year, or that recently manufactured sugar will immediately reach grocery counters at lower rates.

Why Sugar Prices Remain High Despite an Early Supply Surge

Government figures reported by PTI show that the November 3 average of ₹59.50 was ₹13 higher than the ₹46.50 recorded a year earlier—an increase of about 28%. The wholesale average stood at ₹55.40 a kg, versus ₹43.23 in the comparable period of 2025. Both measures had also risen by more than ₹4 during the preceding month.

The latest sugar prices in India also reflect the legacy of the previous season. In August, the Food and Consumer Affairs Ministry revised its estimate of 2025–26 output to about 306 lakh tonnes, down from an initial expectation of 343 lakh tonnes. Disease and waterlogging had hurt cane yields, while seasonal demand intensified pressure on inventories. New supply can take time to pass from mills through distributors to retailers. That lag is one plausible reason prices may not immediately follow factory output downward, although no single factor explains every local quotation.

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Kolkata, Delhi and Mumbai: What Households Paid

On November 3, Kolkata had the highest reported retail rate among the major metros surveyed, at ₹65 per kg. Delhi followed at ₹64, while Mumbai stood at ₹61. A year earlier, the corresponding city figures were ₹50, ₹46 and ₹45, respectively.

CityNovember 3, 2026Year-earlier rate
Kolkata₹65/kg₹50/kg
Delhi₹64/kg₹46/kg
Mumbai₹61/kg₹45/kg

These are dated city-level observations, not guaranteed shop prices on November 10. The national figure is an average across reporting centres, and individual stores may charge more or less depending on quality, location and stock.

Mills Started Faster, Led by Maharashtra

According to the Indian Sugar & Bio-Energy Manufacturers Association (ISMA), sugar production in India reached 12.85 lakh tonnes by November 5, against 3.20 lakh tonnes at the same point a year earlier. The number of mills that had started crushing increased to 184 from 154.

Maharashtra accounted for 10.78 lakh tonnes of the new output, with 136 mills in operation. Uttar Pradesh had a slower opening, while additional crushing capacity was expected to come online after the festival period. ISMA also reported approximately 36 lakh tonnes of stocks carried forward from the previous season. But this fourfold increase compares only the opening weeks of two seasons. It cannot be extrapolated to the country's final annual harvest.

Why a Strong Start Doesn't Guarantee a Bigger Season

In its November 9 assessment, CRISIL Ratings forecast gross sugar production in India at approximately 290 lakh tonnes for 2026–27, below its estimate of 311 lakh tonnes for the previous year. Its full-season outlook reflects concerns about sugarcane yields, even though crushing started earlier. The comparison also helps explain why August's government estimate of 306 lakh tonnes and CRISIL's later 311-lakh-tonne reference should not be treated as identical final figures. They came from different assessments at different points in time.

CRISIL further warned that sugar mills' operating margins could fall to about 6% as cane procurement costs rise and higher-margin ethanol opportunities narrow. Stronger early output, therefore, does not automatically mean producers are enjoying a more profitable year.

Government Measures and the Next Price Test

To improve availability, the Centre announced restrictions on dealers' stockholding, checks against hoarding, limits for bulk consumers and permission for duty-free imports of 10 lakh tonnes of raw sugar. It also encouraged mills to begin crushing earlier. The government has argued that ethanol diversion should not be singled out as the cause of the earlier price rise: the estimated share of sugar diverted for ethanol fell from around 12% in 2022–23 to about 9% in 2025–26.

The next test is whether expanding production and imports improve supplies through November and December. The latest sugar prices are not proof of a nationwide shortage, but neither does a faster start to crushing guarantee prompt relief at the checkout. Buyers should compare the dated government average with local retail quotations rather than assume one figure applies everywhere.

FAQ

Everything you need to know

What is the current retail price of sugar in India?

The latest available official national average was ₹60.61 per kg for November 9, 2026. Individual retail prices vary by location, quality and seller.

Why haven't sugar prices fallen despite higher production?

Although 2026-27 sugar production reached 12.85 lakh tonnes by November 5, four times last year's figure, prices remain high because they still reflect the previous season's lower-than-expected output, festive demand and tight near-term supplies, per PTI reporting.

Which Indian cities have the highest sugar prices?

Among major metros, Kolkata had the highest retail sugar price at ₹65 per kg on November 3, 2026, followed by Delhi at ₹64 and Mumbai at ₹61, according to Business Standard.

TUI

The United Indian Editorial Team

Independent · Fact-Checked · Est. 2021

Our editorial team covers India’s most important developments across environment, technology, governance, economy and society. Every story is independently researched, fact-checked, and written without advertiser influence.

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