Festive delicacies are about to get costlier as sugar prices have rocketed to an all-time high of Rs 70 per kg in the city’s wholesale market on Thursday. The price rise has triggered severe concerns among consumers and traders as the high-demand festive season is approaching fast. The price rally began in July following a brief period of market stability. In June, wholesale sugar was trading at Rs 43–44 per kg. By July, the prices again climbed to Rs 48–49 per kg. The prices maintained their steep upward trend during first two weeks of August. However, on Thursday, the prices hit record peak of Rs 70 per kg. Meanwhile, market experts are divided over the near-term outlook.

 

While many traders are uncertain whether rates have reached their ceiling, several industry insiders expect further rise due to surging consumption ahead of festivals. Interestingly, the Central Government has temporarily authorised duty-free imports of up to 1 million metric tons of raw sugar under a tariff rate quota regime.

 

Effective till October 30, the measure waives standard baseline 100 per cent customs import duty to inject supply and suppress domestic inflation. Experts told ‘The Hitavada’ that increased allocation of sugarcane feedstock towards the national Ethanol Blended Petrol (E20) programme has significantly reduced domestic sugar output. Further, lower production during the 2025–26 season, combined with prior export quotas, has drawn closing inventory down toward multi-decade lows. Domestic demand surges between August and November due to confectionery manufacturing for festivals like Ganesh Chaturthi, Dussehra, and Diwali. Bulk buyers and processors have been actively acquiring inventory to prevent festive shortfalls.