Sugar prices hit Rs 65/kg, Centre imposes stock limits

Sugar prices in India have surged from about Rs 44 per kg in May to Rs 55-65 per kg by late August, a rise of up to 28 percent, triggering a political confrontation ahead of the festive season. The government has attributed the price rise to global weather damage, El Nino, and red rot disease affecting production, while stating that sugarcane output in 2025-26 rose to over 5,000 lakh tons and domestic supplies remain in surplus.

To curb hoarding and speculation, the Centre announced a 15-day stock limit for bulk consumers using over 10 metric tons per month, effective from September until November 30. The curbs apply to sweet shops, soft drink makers, food processors, and confectioneries. Additionally, the government permitted duty-free imports of 10 lakh tons of raw sugar, while keeping exports restricted.

Opposition parties, including the Congress and Aam Aadmi Party, attacked the government over low sugar stocks and questioned the diversion of sugarcane for ethanol production under the E20 policy, alleging that inflation is burdening citizens. Union Minister Pralhad Joshi said global weather damage and disease impacted production.