Sugar prices jump over 10% in a week as supplies tighten before Diwali

Sugar prices in India surged more than 10% over a six-day period as the Diwali season approaches, with ex-mill rates reaching ₹5,200 per quintal in Uttar Pradesh and ₹5,100 in Maharashtra. Agriculture specialist GK Sood noted that the country lacks sufficient sugar, and a recently freed 300,000 tonnes of sugar for domestic use was already consumed in September. The central government responded by permitting duty-free imports of 1 million tonnes of raw sugar, tightening stock-holding caps for dealers, and limiting bulk consumers' purchases.

However, an early start to the crushing season is hampered by a shortage of harvest-ready cane in Maharashtra and Karnataka, and farmers are reluctant to cut the crop early without higher support prices. Industry bodies have suggested moving the 2026-27 crushing season forward, but officials expect large-scale crushing only after November, leaving the market dependent on existing stocks and imports during peak festive demand.