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In August 2026, Odisha, Madhya Pradesh, and Punjab experienced the most significant increase in sugar prices, with Odisha seeing a rise of ₹64.72 per kilogram, a jump of ₹17.80 compared to the same period in 2025. Other states like Assam, Delhi, Goa, Kerala, Meghalaya, Punjab, Tripura, and West Bengal also saw prices surpass ₹60 per kilogram. The national average price reached ₹58.23 per kilogram.

Madhya Pradesh recorded the highest increase within the month, with prices climbing by ₹15.70 per kilogram compared to the previous month. Similarly, Punjab saw a rise of ₹14.67 per kilogram compared to the same day last year. Madhya Pradesh experienced its sharpest increase within a week, with prices rising by ₹11.82 per kilogram compared to the previous Friday.

The Union Ministry of Consumer Affairs, Food & Public Distribution stated that they were closely monitoring the situation and had implemented measures to stabilize sugar prices. The ministry emphasized that the rise in sugar prices could not be attributed to ethanol production, as the share of sugar diverted for ethanol has decreased from 12% in 2022-23 to 9% in 2025-26. Nearly three-quarters of the ethanol produced in the country now comes from grains like maize.

Experts suggest that increased sugar supply in the market could help reduce prices. Lal Singh Gangwar, a Principal Scientist at the Indian Institute of Sugarcane Research, explained that a 10% increase in retail sugar prices during the festive season is typical. He added that input costs for farmers and sugar mills have risen due to increased diesel and fertilizer prices, partly attributed to the conflict in the Middle East.

The government attributed the price hike to several factors, including lower-than-expected domestic production, higher demand during the festive season, weather damage to the sugarcane crop, global sugar supply constraints, and speculation and hoarding by some industry players. The sugar production for the current season is projected at 306 Lakh Metric Tonnes, slightly below the initial estimate of 343 LMT.

To manage stock levels, the government imposed a limit of 400 tonnes on sugar dealers from August 1 to November 30, and from September 1, bulk consumers will only be allowed to hold sugar stocks for up to 15 days of consumption. Additionally, the government permitted duty-free imports of 10 LMT of raw sugar to boost domestic availability.