Sugar prices are climbing ahead of Diwali as supplies tighten, rising over 13 percent in the past six days on strong festive demand from households and sweetmakers.

Ex-mill rates in Uttar Pradesh rose 13 percent to Rs 5,200 per quintal on October 12, up from Rs 4,600 on October 6. In Maharashtra, prices climbed 17 percent to Rs 5,100, Hindustan Times reported, citing local traders.

GK Sood, an agriculture expert and independent director, told HT the country lacks enough sugar, and an additional 300,000 tonnes released into the market has failed to ease the shortage. He added that curbs on stocks and trade have further squeezed supply.

The Centre has moved to improve availability and check hoarding. It has allowed duty-free imports of 1 million tonnes of raw sugar, imposed stockholding limits on dealers and barred bulk consumers from buying in the domestic open market.

Even so, the government fears another price spike before Diwali, an official told HT. The industry’s plan to start crushing early has been held up by a shortage of harvest-ready cane in Maharashtra and Karnataka.

Separately, the Centre on October 12 decided to form a high-level joint committee within a week to address the concerns of sugarcane farmers from the two states. The decision followed nearly three hours of talks in Delhi between Union Agriculture Minister Shivraj Singh Chouhan, Food Minister Pralhad Joshi and a farmer delegation at the Pusa campus. About 80 to 90 representatives from various farmer bodies attended, along with state ministers.

As mills prepare to start crushing for the 2026-27 season, which began on October 1, farmers are seeking a higher cane price to offset rising production costs. They also want the minimum selling price (MSP) of sugar raised from Rs 31 per kg to Rs 50 per kg.