The price of sugar, a commonly used household item along with rice, vegetables and groceries, has increased by ₹7 per kg.

Sugar demand in India is usually high between August and November. With festivals such as Vinayagar Chaturthi, Ayudha Puja and Diwali approaching, demand and sales of sweets are expected to rise.

However, sugar production during the current season has been lower than expected. The shortage of production ahead of the festive season has created pressure in the market. At the beginning of the new season on October 1, sugar stocks with mills are estimated to be around 3.5 million tonnes, the lowest level in nearly 30 years.

Meanwhile, the Union government has already restricted sugar exports to control prices. In July, it also introduced stock limits for dealers to prevent hoarding. These restrictions will remain in place until November 30, 2026.

Under the rules, dealers cannot hold more than 4,000 quintals of sugar and cannot retain their stock for more than 30 days.