Cheeni Kum? Imported sugar is yet to land, so why is it getting cheaper
Indian sugar prices have surged due to supply shortages caused by crop diseases and adverse weather, despite government efforts to curb hoarding. Interestingly, mill-gate prices have begun to drop in anticipation of duty-free imports, even before the shipments have arrived.
Why it matters
Sugar is a staple commodity in India, and price volatility directly impacts household budgets and the broader food industry during festive seasons.
Sugar is leaving a bitter aftertaste in consumers’ household budgets.The all-India average retail price has climbed to Rs 64.24 a kilo, nearly 30% higher than a month ago and 38.63% above last year’s level. In some markets, the sting is even sharper, with consumers paying as much as Rs 70 a kilo for the everyday sweetener.So, what made the humble ‘cheeni’ costlier? The classic case of less supply meeting more demand.India’s sugar production for the 2025-26 season is now estimated at around 306 lakh metric tonnes (LMT), nearly 11% below the initial projection of 343 LMT made by sugarcane-growing states. Crop damage in key growing areas contributed to the shortfall, with diseases such as Red Rot and Top Borer, along with waterlogging caused by excess rainfall, hurting sugarcane output.That tighter supply cushion came just as demand was getting a festive boost.
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