The average retail sugar price in India stood at ₹62.47 per kg as of late August 2026, hitting a record high


Reasons Behind the Rising Prices of SugarAccording to reports in Down To Earth, the reasons behind the unprecedented rise in prices included both weather and market-related factors. Weather-Related Problems: Excess rains, waterlogging, and dry spells affected the production in the state.


Crop Diseases: The sugar content in the cane was lower due to the incidence of red rot and top borer.


Lower Production: The production of sugar is estimated to be 30.6 million tonnes against the earlier estimate of 34.3 million tonnes.


Festive Demand and Hoarding: The sugar price rise was also attributed to the increased demand from bulk buyers during festival seasons and potential hoarding by speculators.


Global Market Scenario: According to the BBC News, global market scenarios and apprehensions of supply deficits also impacted the domestic scenario.