Sugar Price Hike: Jaggery and Shakkar Become Costlier as Prices Rise to ₹150–170 per Kg
A sharp rise in sugar prices is beginning to affect other traditional sweeteners made from sugarcane, with jaggery (gur) and shakkar also becoming more expensive in parts of western Uttar Pradesh. In Saharanpur's Behat area, a local producer has reported that the price of shakkar has increased from around ₹120 to ₹150 per kg, while jaggery has risen from about ₹140 to ₹170 per kg.
The development comes at a time when sugar prices across India have surged sharply, although national average retail prices have started easing after government intervention. The latest government-linked data showed the all-India average retail sugar price at ₹62.57 per kg on September 2, 2026, down 3.85% in a week but still 27% above the previous month's ₹49.33 per kg.
That difference is important: the ₹150 shakkar and ₹170 jaggery figures are local prices for particular products, not the national average retail price of ordinary sugar.
Why Are Jaggery and Shakkar Prices Rising?
The immediate trigger is the sharp movement in the sugar market.
According to a recent local report from Saharanpur, farmer and jaggery producer Sanjay Chauhan, from Kothdi Behlolpur village in the Behat area, said his shakkar price had moved from ₹120 to ₹150 per kg and jaggery from ₹140 to ₹170 per kg. He attributed part of the increase to higher sugar prices and the changing economics of sugarcane processing.
The report also highlights an important structural factor: some farmers are increasingly choosing to process their cane into jaggery and shakkar instead of sending it to sugar mills.
For these producers, the decision is not based only on the selling price. Payment timing matters.
Chauhan said he stopped supplying cane to sugar mills several years ago and instead processes it himself, allowing him to receive payment more quickly. His comments reflect a concern among some growers that delayed mill payments can tie up working capital for long periods.
Sugar Prices Have Already Seen a Major Jump
The recent sugar-price spike has been unusually sharp.
Government data showed the average all-India retail sugar price rising to ₹63.28 per kg on August 31, compared with ₹46.02 a year earlier—a rise of roughly 37.5%. Prices have subsequently moderated following government measures.
By September 2, the national average retail price had fallen to ₹62.57 per kg, while the average wholesale price declined to ₹57.62 per kg from ₹60.39 a week earlier.
So while the market has started moving in the right direction for consumers, the earlier spike is still working its way through the supply chain.
This explains why shoppers may continue to see relatively high prices even after wholesale or ex-mill rates begin falling.
Government Steps In to Control Sugar Prices
The Centre has taken several measures to prevent the sugar-price surge from becoming a larger consumer-inflation problem.
One major step was allowing the import of 10 lakh tonnes of raw sugar without duty. India has also opened applications for the remaining 202,550 tonnes of the approved raw-sugar import quota, with the quota valid until October 31, 2026.
The government has also tightened sugar stockholding rules.
From September 15 to November 30, sugar dealers' stock limit will be reduced to 2,000 quintals, with the objective of preventing excessive stockpiling and speculative trading during the festive season.
The government's intervention appears to have had an effect at the upstream level. The Ministry of Consumer Affairs said in late August that ex-mill sugar prices had fallen by around 20% and that retail prices were beginning to move lower.
Why Retail Prices Do Not Fall Immediately
There is usually a time lag between a fall in wholesale prices and what consumers pay at retail shops.
A retailer may have purchased sugar at an earlier, higher price. Selling the existing stock immediately at the new lower market rate could mean taking a loss.
Industry sources cited by PTI said retailers generally need to sell their existing inventory before lower procurement costs can fully pass through to consumers.
The same principle can apply to other sugarcane-based products.
If jaggery and shakkar producers have purchased cane, fuel and other inputs at higher costs, their selling prices may not immediately fall simply because the sugar market begins correcting.
Why Some Farmers Are Moving Away From Sugar Mills
The Saharanpur example points to a larger issue in the sugarcane economy: cash-flow certainty.
Sugarcane farmers have traditionally relied heavily on sugar mills as buyers. But if payments are delayed, the farmer's money remains locked up even though the crop has already been harvested and delivered.
A farmer processing cane into jaggery or shakkar has a different business model. The farmer or producer takes on additional processing and marketing work, but can potentially sell the finished product directly and receive payment sooner.
The local producer quoted in the Saharanpur report said he had stopped sending cane to mills around eight years ago and now makes jaggery and shakkar instead. He said the model gives him immediate payment and has generated stronger demand for his products.
That does not mean every farmer can earn more this way. Processing requires equipment, labour, fuel, quality control, packaging and access to buyers. But where those facilities already exist, value addition can give farmers an alternative to traditional mill procurement.
Festive Demand Could Keep Pressure on Sweetener Prices
The timing is also important.
India is moving toward a major festive consumption period, when demand for sweets, bakery products and traditional foods typically increases.
That is one reason the government is trying to ensure sufficient sugar availability before demand accelerates.
Reuters reported that the government opened applications for the remaining raw-sugar import quota specifically to support supplies ahead of the festival season.
If imports arrive smoothly and domestic stocks remain adequate, sugar prices could remain under pressure in the near term. That would eventually help consumers.
But if demand rises faster than supply reaches the market, retail prices could remain elevated for longer.
What Does This Mean for Consumers?
For households, the immediate impact is straightforward: products that depend heavily on sugarcane can become more expensive when raw-material economics change.
Jaggery and shakkar are not identical to refined sugar, and their prices can vary significantly according to quality, processing method, region and whether the product is marketed as organic or traditionally processed.
For example, a recent market report said jaggery prices had risen from around ₹70 per kg in July to ₹90–100 per kg in some markets during the recent sugar-price spike.
That shows why there cannot be one nationwide retail price for all varieties of gur or shakkar.
What Investors Should Watch
For investors tracking sugar companies, the current situation is more complicated than simply asking whether sugar prices are rising.
Higher sugar realisations can potentially support mill revenue, but higher cane costs, government controls, export restrictions, ethanol economics and policy intervention can change margins.
The government's decision to allow imports and restrict dealer inventories shows that policymakers are prioritising consumer price stability as the festive season approaches.
Investors should therefore monitor:
Domestic sugar prices and ex-mill rates
Sugar stocks and production estimates
Raw-sugar imports
Government stockholding rules
Sugarcane availability and procurement costs
Ethanol-related demand for sugarcane products
Festive-season consumption
Payment conditions for cane farmers
The direction of sugar prices over the next several weeks could matter for both consumers and sugar-sector companies.
Bottom Line
The reported rise in Saharanpur's shakkar and jaggery prices—from ₹120 to ₹150 per kg for shakkar and ₹140 to ₹170 for jaggery—shows how the recent sugar-price shock is reaching other sugarcane-based products.
However, the national picture is already changing. Average retail sugar prices have started falling after government measures, including duty-free imports and tighter stockholding rules.
The key question now is whether the decline in wholesale and ex-mill prices reaches consumers quickly enough before festive demand picks up. At the same time, the shift by some farmers toward processing cane into jaggery and shakkar highlights a deeper issue: for farmers, getting paid quickly can be almost as important as the headline price.
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This article is for informational and educational purposes only and should not be considered investment advice.