Retail sugar prices rise due to demand-supply imbalance during festive season

According to a Sandesh (Business) report, sugar prices have increased due to an imbalance between demand and supply during the festive period, affecting kitchen budgets. The average retail price of sugar in the country's markets has reached approximately ₹59.50 per kg, while in the wholesale market, the price of sugar is hovering around ₹55.40 per kg.

India is a leading producer of sugar globally, with the country producing an average of 30 to 34 million tonnes (300 to 340 lakh tonnes) of sugar every year. Sugar production figures keep fluctuating due to erratic weather and the government's target of making ethanol from sugarcane juice. For the 2025-26 season, total sugar production is estimated to be around 30.6 million tonnes. Uttar Pradesh, Maharashtra, and Karnataka make the largest contributions to the country's total sugar production.

Along with production, India is also among the world's largest consumer markets for sugar. The domestic consumption of sugar in the country is around 28 to 29 million tonnes annually. This domestic consumption includes household use as well as large industries such as hotels, restaurants, bakeries, and cold drink manufacturers. To meet the country's green energy needs, a large quantity of sugarcane juice and molasses is being diverted towards ethanol production, which is impacting the availability of traditional sugar.

Earlier, India used to export around 6.8 million tonnes of sugar annually to the global market. In the bumper crop season of 2021-22, the country exported a record 10.98 million tonnes of sugar. To maintain an adequate stock of sugar in the local market and control inflation, the central government is keeping a very strict watch on exports and is permitting only limited exports.

According to Wikipedia, sugar is a class of sweet-tasting, soluble carbohydrates, many of which are used in food. Simple sugars, known as monosaccharides, include glucose, fructose, and galactose. Compound sugars, known as disaccharides or double sugars, are molecules composed of two bonded monosaccharide units. Sucrose, lactose, and maltose are common examples of compound sugars, and white sugar is almost pure sucrose. During digestion, compound sugars are hydrolyzed into simple sugars.