Bhubaneswar: Driven by localised supply tightness and erratic monsoon rains in major sugarcane-producing belts such as Maharashtra and Karnataka, retail sugar prices across India have surged sharply, with Odisha experiencing the severe brunt of the price spike.
According to the latest Consumer Price Index (CPI) data, retail sugar inflation in Odisha breached 37.48 per cent year-on-year in September, making it the hardest-hit state in the nation. Across the country, retail sugar inflation crossed the 30 per cent threshold in 21 out of 36 states and Union Territories, pushing the national retail sugar inflation rate to 29.80 per cent in September, up from 24.27 per cent in August.
This nationwide acceleration marks the highest retail print since January 2026 under the revised CPI series with a 2024 base year, with the overall sugar index reaching 136.25.
Odisha Retail Prices Skyrocket Past Rs 70/kg
September recorded the highest inflation rate of the year for almost every region, save for Rajasthan, where rates eased marginally to 25.15 per cent. Market inputs from trade bodies and regional monitoring portals highlight that eastern states like Odisha, which rely heavily on sugar shipments from western and southern production hubs, are absorbing disproportionately higher freight costs alongside elevated spot wholesale prices, multiplying the impact on consumer end-prices ahead of the festive season.
Odisha saw a jump from 23.71 per cent in August to 37.48 per cent. Local reports indicated that retail rates escalated dramatically, touching between Rs 65 and Rs 70 per kg across several parts of the state. Sugar was readily available for around Rs 40 to Rs 45 per kg just a month or two ago. However, prices climbed rapidly to Rs 58 per kg in recent weeks before skyrocketing to the current peak, recording an increase of Rs 7 to Rs 12 per kg over the past fortnight and up to Rs 20 to Rs 30 per kg over the last month, according to local market vendors and industry trackers. This pressure has also pushed up alternatives like jaggery, which rose by Rs 20 per kg to Rs 80 or more, and mishri to Rs 80 per kg.
Consumers expressed growing concern over the compounding inflation, noting that skyrocketing sugar prices have further disrupted monthly kitchen budgets alongside rising costs for other essential groceries, milk, and cooking fuel. Beyond individual households, the commercial sector—including bakeries, eateries, and traditional sweet manufacturers—is also bearing the brunt. The impact is especially stark in Pahala, Odisha’s famous sweet market hub renowned for delicacies like Rasagola, Chhena Poda, and Chhena Gaja. Sweetmakers in the region report that procurement costs have soared beyond manageable levels.A local trader shared that while his previous wholesale stock was purchased at roughly Rs 3,200 per quintal, current market replenishment rates threaten to decimate operating margins. The steep market surge is currently forcing sweetmakers to absorb heavy losses amounting to nearly Rs 2,000 per quintal.
The overall retail inflation in the state stood at 6.70 per cent in September, the second-highest among major states after Tamil Nadu, driven in part by food and beverage prices rising 9.21 per cent, of which sugar formed a notable component. The rate rose from around 5.5 per cent in August, indicating increasing price pressures on households. Rural areas were hit harder, with inflation reaching 7.24 per cent, compared with 5.23 percent in urban areas, according to data from the Ministry of Statistics and Programme Implementation (MoSPI).
Curbs In Place
To curb further price volatility and safeguard domestic availability, central policy interventions have significantly curtailed the diversion of sugarcane derivatives toward biofuel production. Oil marketing companies have excluded ethanol produced from sugarcane juice, sugar syrup and B-heavy molasses from their 2026-27 procurement tender. The tender, issued on October 16, instead prioritises ethanol from maize, broken rice, surplus rice from the Food Corporation of India and C-heavy molasses, while cutting the maize-based ethanol incentive to Rs 2.79 per litre from Rs 5.79, reducing its price to Rs 68.86 per litre, the Business Standard reported.
