Sugar, jaggery prices spike in Kolkata ahead of festive rush
Retail sugar prices have shot up to Rs 70 a kilogram in Kolkata markets ahead of the festive season, traders said on Friday, Aug 21.
Prices have risen by Rs 20 a kilogram in the past month, with a sudden 10% jump in the last four to five days alone, traders said. Sugar-linked products such as jaggery, batasa (sugar drops) and nakuldana are also seeing a similar spike.
The Centre on Thursday evening allowed sugar mills to import one million tonnes of raw sugar — a step last taken a decade ago — but its impact has yet to reach retail markets, traders said. The government has also capped stockholding for bulk customers consuming more than 10 tonnes of sugar a month, limiting them to 15 days' consumption.
Confederation of West Bengal Trade Association (CWBTA) president Sushil Poddar said there was no control over sugar mills, with wholesale prices already at Rs 65 a kilogram.
"I sold loose sugar at Rs 65 just three days ago, but today I can't sell below Rs 70 a kilogram," said a neighbourhood kirana store owner.
"There is no control on sugar mills. Wholesale prices have already shot up to Rs 65 a kilogram, and retail prices will reach about Rs 70 a kilogram. Diversion to ethanol is one of the key reasons. Moreover, higher blending is also damaging vehicles now," Poddar said.
"The sudden sugar price spike ahead of the festival season, between September and November, is a matter of concern. The government allowing import of one million tonnes of raw sugar will not be enough to stem the rise, and more interventions are needed," he said, noting that one million tonnes amounted to roughly a fortnight's domestic demand.
Lower sugar production in Brazil has also added to the pressure, traders said. Sweetmeat shop owners said elevated commodity prices, coming on top of the earlier LPG crisis, were squeezing makers further, with prices likely to rise more if sugar rates stay elevated.
West Bengal minister Dilip Ghosh blamed the price spike on hoarding rather than ethanol blending. However, an official at a leading sugar mill company said crushing had ended in April and mills were only now releasing stock, adding there was little more mills could do at this stage.
According to a May report by rating agency ICRA, gross sugar production for sugar year 2026 (SY2026) is projected to rise 5.03% to 31.10 million tonnes, up from 29.6 million tonnes the previous year. Net production, after an estimated 3.1 million tonnes diverted to ethanol, is likely to remain at 28 million tonnes, the report said.
With domestic consumption of 28.3 million tonnes and 0.7 million tonnes already exported, closing stock is expected to be around 4.3 million tonnes by September 2026, against 5.3 million tonnes the previous year — about two months of consumption, indicating slightly lower inventory than in past years. The report added that the SY2027 season could be affected by El Niño, potentially reducing production further.
(With PTI inputs)
