New Delhi, Aug. 27 -- Retail sugar prices have surged unusually fast, rising from Rs.49 per kg a month ago to Rs.65 per kg on 26 August. Prices are about 41% higher than a year ago, according to data from the consumer affairs department.

The spike comes just ahead of the festive season, when sugar consumption typically rises. Is it a result of lower production or diversion of sugar to ethanol? Mint explains the factors at play and what consumers can expect in the coming months.

Sugar production fell in consecutive years in the 2023-24 and 2024-25 seasons due to a drop in yields and adverse weather. A sugar season runs from October of one year to September of the next, in line with cane harvesting and crushing timelines. Last year, the c...