Sugar Prices Jump 40% to ₹70 per kg in Mumbai Ahead of Festive Season
Retail sugar prices across Mumbai, Dadar, and Dombivli have climbed by 40% over the last 10 days, rising from ₹50 to ₹70 per kilogram ahead of Ganeshotsav. In response to the spike, the central government announced in a press statement on Friday that it has decided to import 10 lakh metric tonnes of raw sugar to stabilize domestic rates.
The Centre stated that the price increase is driven by lower-than-expected domestic production, festive-season demand, weather-related crop damage, and rising international sugar prices, rather than the diversion of sugar for ethanol. The government noted that crops suffered from red rot, top borer disease, and waterlogging caused by excess rainfall. International sugar prices rose by over 16% between June 30 and August 20, increasing from $474 to $552 per tonne amid a projected global sugar deficit of 33 lakh metric tonnes for 2026-27.
Local retailers and wholesalers confirmed the steep surge across the Mumbai Metropolitan Region. Paresh Bhanushali, a grocer in Dombivli, noted that retail sugar prices climbed from ₹48 to ₹50 per kg in early August to ₹70 per kg within 10 days. Ashok Jain, president of the Bombay Sugar Merchants Association Ltd, stated that wholesale rates reached between ₹62 and ₹67 per kg on Friday, pushing retail costs above ₹70. Jain noted the association had written to the Centre on August 10 requesting market intervention and imports.
The price surge has begun affecting local sweet manufacturers. Aditya Acharya, partner at D Damodar in Dadar, said production costs have risen by 25% due to weekly wholesale sugar purchases, adding that sustained high prices could force a revision of sweet prices. Prashant Sakpal, founder of Prashant Corner, which operates 18 branches across the Mumbai Metropolitan Region, stated that wholesale sugar costs for good quality stock climbed from ₹42 to ₹58 per kg, squeezing production margins.
According to industry estimates, national sugar production dropped by roughly 30 lakh metric tonnes below the average 320 lakh metric tonnes. Maharashtra's output reached 99 lakh metric tonnes, falling short of the expected 108 lakh metric tonnes. Amid the price surge, Sanjay Khatal, managing director of the Maharashtra State Co-Operative Sugar Factories Federation Ltd, stated that the central government has initiated physical verifications of sugar stocks at factories and with traders nationwide.
