Sugar production rises but prices remain high in India

Sugar production in India has surged to 1.285 million tonnes as of November 5, significantly higher than the 320,000 tonnes produced during the same period last year. This increase is attributed to more mills commencing crushing operations earlier this season to meet festive demand. Despite the rise in production, domestic sugar prices have not decreased, with the average retail price at ₹60 per kg, up 36% from ₹44 per kg a year ago. As of November 5, 184 sugar mills are operational across the country, compared to 154 mills last year. Maharashtra leads production with 1.078 million tonnes, while Uttar Pradesh has 19 mills producing 20,000 tonnes. Most mills in western Uttar Pradesh are expected to start operations soon, with central mills likely to begin after Diwali. The ongoing high prices despite increased production may impact consumer purchasing behavior during the festive season.