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Sugar prices jump twenty rupees in one month
Indian Express··23 Aug
On 21 August 2026, the all-India modal retail sugar price was Rs 65 a kg, up from Rs 45 on 21 July. Ex-factory rates in Maharashtra and Karnataka were about Rs 63 to 64 a kg on 20 August, against the mid-40s on 1 August. The department said the rise came before Dussehra and Diwali in October and November.
Prism
What It Means For You
- If you buy sugar for festival sweets, the modal retail rate on 21 August was Rs 65 a kg, Rs 20 higher than a month earlier.
- Anyone running a bakery or bulk kitchen should note that from 1 September, bulk users may not hold more than 15 days of stock.
- If you are a dealer, the 400-tonne cap runs from 1 August to 30 November 2026.
What's Happening
- ISMA first estimated 343.5 lakh tonnes of gross sugar and 34 lakh tonnes for ethanol; later figures are 309 and 30 lakh tonnes.
- Karnataka mills produced 47.2 lakh tonnes against a 63.5 lakh-tonne forecast after waterlogged fields in September and October 2025.
- International prices rose from 474 dollars a tonne on 30 June to 552 dollars on 20 August, a rise of more than 16 per cent.
Why Sugar Stocks Hit A Nine-Year Low
- The government rejected the claim that ethanol blending caused the spike, saying three-fourths of ethanol now comes from maize and other grain.
- Opening stocks were about 50 lakh tonnes; after 280 lakh tonnes of domestic use and 8 lakh tonnes of exports, the close is near 41 lakh tonnes.
- Duty-free import of 10 lakh tonnes of raw sugar is meant to add supply before the next crushing season starts in October.
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