KOLKATA: Retail sugar prices in Kolkata have risen to around Rs 70 per kg ahead of the festive season, according to media reports citing traders. Prices have increased by around Rs 20 per kg over the past month, with a further 10% rise reported in the last four to five days.
Prices of sugar-based products, including jaggery, batasa and nakuldana, have also increased, according to traders.
The Centre has allowed sugar mills to import one million tonnes of raw sugar in an effort to ease domestic supply pressures. The government has also imposed a stockholding limit on bulk consumers using more than 10 tonnes of sugar a month, restricting them to 15 days’ consumption.
According to media reports, wholesale sugar prices in Kolkata have reached around Rs 65 per kg. Sushil Poddar, president of the Confederation of West Bengal Trade Association, said the rise ahead of the September-November festive period was a matter of concern.
Traders have cited several factors behind the price increase, including tighter supplies, festival demand and lower global availability. Some traders have also pointed to diversion of sugar towards ethanol, although the government has said ethanol diversion is not the primary reason for the current price rise.
Sweetmeat manufacturers said higher sugar prices were adding to production costs and could lead to further increases in sweet prices if the trend continues.
An official from a leading sugar mill company said crushing operations had ended in April and mills were currently releasing available stocks.
A May report by rating agency ICRA projected gross sugar production for sugar year 2026 at 31.10 million tonnes, up 5.03% from 29.6 million tonnes a year earlier. After estimated diversion towards ethanol, net sugar production was projected at around 28 million tonnes.
The report estimated domestic consumption at 28.3 million tonnes and exports at 0.7 million tonnes, with closing stocks expected to be around 4.3 million tonnes by September 2026, compared with 5.3 million tonnes a year earlier.
ICRA also said the sugar year 2027 season could be affected by El Nino conditions, potentially putting further pressure on production.
With the festive season approaching, market prices are being closely monitored as the government seeks to improve sugar availability and contain further price increases.
