Early mill closing, ethanol production and export window have lately helped lift the price of sugar in India.  

According to the Economic Times, the January 2025 price hit 39,500 rupees ($455.04) a tonne, effectively overturning December 2024’s 38,000 rupees ($437.76). 

In late 2024, the wholesale price of sugar in India had fallen by 3% year-on-year (y-o-y) as cane harvesting begun. 

The price rally partially owes to the closure of 37 mills a fortnight earlier than usual from sugarcane shortage, Reuters reports.

Millers from Karnataka, Uttar Pradesh and Maharashtra cited the reduction in sugarcane supplies for the early closures. 

In 2024, just 11 mills ended their operations this early, which indicates supplies could be tight for 2025. 

The development is happening in the middle of India’s sugar crushing season, which runs October through September.

Another lead cause for the price rally is the in-progress reinstating of 1 million-tonne exports for 2025. 

While exports will underpin local prices, they will also benefit millers whose production costs are up 1.5 rupees ($0.017) a kg. 

Unlimited ethanol production allowance since November 2024 has also weighed down on production. Notably, national sugar output was already down 16% y-o-y between October and December 2024.

Meanwhile, the government’s promise to increase the minimum selling price of 31 rupees ($0.36) per kg is still hatching. 

Sugarcane farmers in Uttar Pradesh also await the state advised price (SAP) to increase to 400 rupees ($4.61) per quintal (100 kg). The state government last set the price in 2024 at 370 rupees ($4.27) a quintal, which farmers cite as insufficient.

It therefore looks like shortage, export allowance and market factors are regenerating India’s sugar prices after recent lows. Below are supporting statistics on the country’s sugar pricing patterns in recent years and around major cities. 

Statistics on Price of Sugar in India

India keeps a tight hold of its sugar prices, especially at the wholesale level. Hence, between 2010 and 2018, the mandi (wholesale market) price remained at an average 45 rupees ($0.52) per kg. This is according to data by CEIC. The period’s highest price was 60 rupees ($0.69) a kg in 2017 while the lowest was 30 rupees ($0.35) in 2015.  

How are prices faring in early 2025?  

Mandi prices in major cities in early 2025 started at 3,800 rupees $43.78) a quintal or 38 rupees ($0.44) per kg. The period’s top price was 4,300 rupees ($49.54) a quintal or 43 rupees ($0.50) per kg, as of February 11, 2025.  This indicates low-to-moderate prices in comparison to those of the annual 2010-18 period. 

Where is sugar most expensive in India?

Using December 2022 statistics as the benchmark, Kolkata in northeast India is the price champ at 43.37 rupees ($0.50) per kg. Mumbai in western India follows at 42.68 rupees ($0.49) while Delhi in northern India comes third at 41 rupees ($0.47).  In 2022, the average national price was 42.2 rupees ($0.47).