India’s retail sugar price has climbed to as high as 75 rupees ($0.79) per kilogram, up from 40 rupees in September 2025, prompting concerns that the cost of festive sweets could rise sharply ahead of Diwali [F7](https://www.aljazeera.com/features/2026/9/17/poor-bear-the-impact-sugar-prices-soar-in-india-souring-festive-season?traffic_source=rss).
Jai Krishan, a 43‑year‑old labourer from Bihar who works in Srinagar, Indian‑administered Kashmir, says he has saved 15,000 rupees ($160) to travel home for Diwali. He estimates he will spend about $35 on sweets for the holiday, a significant expense for his lower‑middle‑class household [F2][F3][F4][F5]. “I can reduce my spending on clothes or other things, but I cannot return home without bringing sweets for my family,” Krishan said, adding that he may have to cut back on toys and clothing to stay within budget [F6][F8].
India’s sweets sector, valued at more than $1.1 billion, generates over 40 percent of its annual revenue during the peak festive season [F9]. The country is the world’s largest consumer of sugar and the second‑largest producer, accounting for roughly 20 percent of global output, a share that normally leaves it with sufficient domestic supply and a surplus for export [F10][F11].
Government data project that sugar production for the current season (October 2025 – September 2026) will reach about 30.6 million tonnes, which is 11 percent lower than an earlier estimate of 34.3 million tonnes [F12][F13]. The shortfall has coincided with accusations from officials that hoarders have been stockpiling sugar after the effects of El Niño became evident, allegedly to tighten supplies and profit from higher prices [F14].
Mukesh Chandra, a sugarcane farmer from Punjab, acknowledges the production dip but points to multiple factors beyond hoarding that have contributed to the lower output and rising prices [F15].
The combination of higher retail prices, reduced domestic production, and concerns over supply‑chain manipulation has raised alarms that many Indian families may face tighter budgets for Diwali sweets, a staple of the holiday celebration.
Sources
Al Jazeera News, “‘Poor bear the impact’: Sugar prices soar in India, souring festive season,” September 17 2026, https://www.aljazeera.com/features/2026/9/17/poor-bear-the-impact-sugar-prices-soar-in-india-souring-festive-season?traffic_source=rss
Source: Al Jazeera News
Corrections
If you believe this article contains an error, contact Herald Express with the source URL and supporting evidence.
Story synopsis gathered from: Al Jazeera News — source
