Sugar Prices Set to Surge: Ramadan Demand Meets Supply Crunch as Maharashtra’s Crushing Season Nears End
Sugar prices in India are expected to rise due to strong demand for the upcoming month of Ramadan and a reduction in Maharashtra’s sugar quota by 13.22%. With many mills in Maharashtra closing their crushing season, market availability is tightening.
The domestic sugar market is bracing for a bullish trend as the holy month of Ramadan approaches, driving up demand across India. In Maharashtra, the situation is compounded by the fact that many sugar mills are reaching the end of their crushing season, leading to a natural decrease in fresh supply. Market experts predict that this combination of high festive demand and lower production output will keep sugar prices firm in the coming weeks.
For the month of March 2026, the Central Government has announced a total sugar quota of 22.5 lakh tonnes. However, a significant policy shift has occurred in state-wise allocations. While Uttar Pradesh saw its quota increase by 6.71% to 7.55 lakh tonnes, Maharashtra’s quota was slashed by 13.22%, dropping to 8.12 lakh tonnes compared to 9.35 lakh tonnes in February. This reduction in the release quota is expected to put further upward pressure on prices within the state.
Currently, sugar prices across Maharashtra show a steady to slightly firm trend. The S-30 grade is trading between ₹3,700 and ₹3,720 per quintal, while the M-30 grade ranges from ₹3,800 to ₹3,820 per quintal. In comparison, prices in South Karnataka are notably higher, with M-30 reaching up to ₹4,175 per quintal, reflecting the regional disparity in supply.
Other states like Uttar Pradesh and Gujarat are also seeing varied price points. In UP, M-30 sugar is priced between ₹4,030 and ₹4,130, while Gujarat’s rates are slightly more competitive, with S-30 trading around ₹3,811 to ₹3,831. Traders in Kolhapur and other major hubs are closely watching the market, as any further tightening of supply could lead to a retail price hike before the festivities begin.
With the crushing season winding down, the sugar industry is now looking toward the Central Government for potential policy interventions. While the current prices provide some relief to mills struggling with production costs, consumers may feel the pinch of rising sweets and beverage costs during the Ramadan and summer season.
