Odisha leads as sugar inflation crosses 30% in 21 states and UTs | Economy & Policy News

Retail sugar inflation crossed 30 per cent in 21 of the 36 states and Union Territories in September, according to the latest Consumer Price Index (CPI) data. Odisha led all states and Union Territories, with sugar prices 37.48 per cent higher than a year earlier.

At the national level, sugar inflation rose to 29.80 per cent in September from 24.27 per cent in August. This was the highest level since January 2026, the earliest month for which inflation data is available in the new CPI series with 2024 as the base year. The index for sugar was 136.25 during the month, the highest since January 2025.

Retail sugar inflation was as low as 1.44 per cent in April.

September’s reading was the highest so far in 2026 in every state and Union Territory except Rajasthan, where sugar inflation eased slightly from 25.65 per cent in August to 25.15 per cent.

Oil marketing companies have barred ethanol made from sugarcane juice, sugar syrup and B-heavy molasses (a by-product of sugar production with some residual sugar) from their procurement tender for the 2026-27 supply year. The move comes amid concerns over sugar availability and rising prices after poor rainfall in key producing states, including Maharashtra and Karnataka.

At the wholesale level, sugar inflation stood at 12.72 per cent in September, according to Wholesale Price Index (WPI) data. It eased from 16.29 per cent in August, the highest in 30 months. Wholesale sugar inflation had been negative as recently as March and April 2026.

The tender, issued on 16 October, allows bids for ethanol made from maize, broken rice, surplus rice procured by the Food Corporation of India and C-heavy molasses (final molasses left after most sugar has been extracted). It also cuts the incentive for maize-based ethanol to ₹2.79 per litre from ₹5.79, lowering its procurement price to ₹68.86 per litre from ₹71.86.

Wholesale maize prices rose 3.34 per cent in September from a year earlier, according to data released by the Ministry of Commerce and Industry. The September print marked a reversal from the deflationary trend seen since July 2025.

Maize prices had been lower than a year earlier for 13 straight months from August 2025 to August 2026, with the steepest fall, at 13.79 per cent, in March 2026.