CityLightBuzz: New Delhi, August 22, 2026: Sugar prices have witnessed a significant rise across India in recent weeks, with the average retail price increasing by nearly ₹10 per kg over the past month. However, the Central Government has rejected claims that the increase is linked to ethanol production.
The Ministry of Consumer Affairs, Food and Public Distribution clarified that there is no direct connection between ethanol production and the recent rise in sugar prices.According to the Centre, several factors have contributed to the increase, including lower sugar production, increased demand during the festive season, crop losses caused by adverse weather conditions and tighter global supply conditions.
Sugar Prices Rise to ₹55.70 per Kg ,According to the figures cited by the Centre, the average retail price of sugar was around ₹48.18 per kg on July 20. It has now increased to approximately ₹55.70 per kg, marking a rise of about ₹7.52 per kg.The increase has raised concerns among consumers as well as businesses that depend heavily on sugar, including sweet shops, bakeries, beverage manufacturers and food-processing companies.Centre Rejects Ethanol Link
There has been speculation that sugar prices are rising because sugar mills are diverting sugarcane towards ethanol production. However, the Centre has categorically rejected this claim.The government said the current price increase is primarily due to supply and demand pressures, lower production, festive-season demand, weather-related crop losses and global supply conditions, rather than ethanol production.
The government is continuing to monitor the sugar market and supply situation amid the recent increase in prices.
Key Points
Average sugar price on July 20: ₹48.18/kg
Current average price: ₹55.70/kg
Increase: Approximately ₹7.52/kg
Centre: Ethanol production is not responsible for the price rise
Major factors: Lower production, festive demand, weather-related crop losses and global supply conditions
