Sugar Prices Surge to ₹69/kg: Government Steps In to Tame Skyrocketing Rates

Domestic sugar prices have surged sharply across India despite recent policy interventions by the Central Government. On August 20, 2026, wholesale rates jumped by up to ₹525 per quintal in major trading hubs, driving retail prices up to ₹69 per kg, with branded packaged sugar touching ₹80 per kg. Authorities expect prices to cool down shortly as new import and inventory measures take effect.

Wholesale Price Movement (August 20, 2026)

• Ahmedabad: Increased by ₹525 to reach ₹6,405 per quintal.
• Kolkata & Chennai: Rose by ₹472.50 to hit ₹6,562.50 per quintal.
• Kolhapur: Rose by ₹446.25 to settle at ₹6,405 per quintal.
• Delhi: Climbed by ₹420 to reach ₹6,510 per quintal.
• Kanpur, Bengaluru & Muzaffarnagar: Traded at ₹6,531, ₹6,457.50, and ₹6,468 per quintal, respectively.

Retail Price Breakdown

Between August 11 and August 20, retail sugar prices escalated across major metros:

Key Government Interventions

• Duty-Free Raw Sugar Import: The government authorized the duty-free import of up to 10 lakh metric tonnes (1 million tonnes) of raw sugar under a Tariff Rate Quota (TRQ). Refined sugar produced from these imports must be sold in the domestic market by October 31, 2026.
• Strict Stock Holding Limits: Entities or dealers utilizing over 10 metric tonnes of sugar monthly are restricted from holding stock exceeding 15 days of inventory. This regulation takes effect on September 1, 2026, and remains active through November 30, 2026.