Sugar prices in India have increased by 4.3 per cent in the past week and nearly 17 per cent over the last one month, raising concerns among industry stakeholders. The all-India average price has risen to Rs 4,620 per quintal from Rs 3,960 per quintal during the period, according to the government data.Rising sugar prices could also affect ethanol production as mills may find it more profitable to produce and sell sugar than divert cane or sugar for ethanol, industry experts said.Sugar prices have been rising in India because of lower production, deficient rainfall in some regions and festival-season demand. To control prices, the government has restricted sugar exports and imposed stock limits. However, prices may remain firm, they added.The Centre, which regulates domestic sugar sales through monthly quotas for sugar mills, has fixed the August sales quota at 2.25 million tonnes, the same as in August last year.Industry officials said they expect the government to closely monitor the market and announce further measures if prices continue to rise.The government had recently imposed stock limits to keep prices under control. Under the order, sugar dealers cannot hold any stock for more than 30 days. They are also not allowed to hold more than 4,000 quintals of sugar at any location at a given time. Action will be taken against those holding stocks beyond the prescribed limit.The order came into effect on August 1, and will remain valid until November 30. Sugar prices are also likely to rise further during the festive season. This would increase the burden on consumers and limit the government’s ability to release additional sales quota.In a statement recently, All India Distillers’ Association president Vijendra Singh had said ethanol prices remained unchanged for a long time, while cane prices had risen about 16 per cent since ethanol prices were last revised in 2022-23. This has made ethanol production less remunerative for sugar mills, he said.According to the Indian Sugar and Bio-energy Manufacturers Association (Isma), India’s sugar production in the current 2025-26 crushing season is estimated at about 27.9 million tonnes, while domestic consumption is expected to be around 28.5 million tonnes.