Sugar prices in India have surged to their highest level in 16 years, putting pressure on households just as Onam and Durga Puja celebrations approach. Spot sugar prices touched around Rs 5,530 per quintal, while retail rates climbed to Rs 52.30 a kg, up sharply from Rs 46.34 a year earlier. With both festivals built around sweets and prasad, the timing has made the price spike hit especially hard.
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What Is Driving The Price Rise
The shortage traces back to tight domestic stocks. Consumption during the 2025-26 sugar season has outpaced production, worsened by export quotas of nearly 2 million tonnes approved earlier in the year when supply signals were already weakening. Mills reportedly struggled to meet monthly domestic sales quotas as early as March, but corrective steps came only months later.
Government Steps In With Duty-Free Imports
To ease the crunch, the Centre has allowed imports of up to 1 million tonnes of raw sugar completely free of duty, a levy that otherwise stands at 100 per cent. The window remains open until October 31, 2026, covering the peak of the festive buying season. This marks the first time since 2016-17 that India has permitted duty-free raw sugar imports.
What This Means For Consumers
The move is aimed at increasing supply quickly enough to cool prices before Onam and Durga Puja demand peaks. Industry watchers expect some relief in the coming weeks, though the full price impact will depend on how fast imported stock reaches the market and whether monsoon and global supply pressures ease further.
