Rising Wholesale Prices in Major Markets and Seasonal Demand May Support Sugar Prices Despite Government Measures to Ensure Adequate Supply
New Delhi: Sugar prices in India are likely to remain firm as demand rises during the ongoing festive season, with Navratri underway and Dussehra, Diwali and Chhath Puja approaching. Sugar consumption typically increases during this period as households, sweet manufacturers and food businesses prepare for festive celebrations. The government has been allocating substantial free-sale quotas to sugar mills every fortnight to maintain adequate domestic supplies and prevent excessive price increases.
The government is expected to announce the domestic sugar sale quota for the second half of October 2026, covering the period from October 16 to October 31. Authorities have repeatedly instructed sugar mills to sell their allocated quotas within the prescribed timelines to ensure sufficient availability in the domestic market and discourage artificial price increases. However, recent market trends indicate that prices are continuing to face upward pressure despite these measures. 
Wholesale sugar prices recorded significant increases in several major markets last week, including Mumbai, Kolkata, Indore, Raipur and Patna. Market participants expect prices to fluctuate in the coming days, although the overall sentiment remains firm amid seasonal demand and concerns over near-term supply conditions. The start of sugarcane crushing operations at some mills from next week could gradually improve sugar availability, depending on the pace of operations and fresh production entering the market.
The coming weeks will be crucial for the domestic sugar market as the government balances festive demand, mill-level sales quotas and the commencement of the new crushing season. While fresh production could ease supply pressures, the combination of increased consumption and rising wholesale prices suggests that sugar prices may remain supported in the short term.
