Jaggery prices have surged by around 25% in the past fortnight in key producing states such as Maharashtra and Uttar Pradesh, raising concerns over higher costs for sweets ahead of the festive season. Manufacturers and traders said jaggery prices have risen by around 25-30% across the country in August.
Prices are expected to remain firm until October, when fresh jaggery production is likely to begin. Industry executives said a government crackdown on units in Maharashtra allegedly producing adulterated jaggery has tightened supplies over the past three months, adding to the recent price pressure.
Another concern is the expected decline in sugarcane availability next year. Industry veterans said this could keep jaggery prices elevated through 2027, putting further pressure on sweet manufacturers and consumers.
Jaggery prices generally move in tandem with sugar prices. The latest increase comes as sugar prices have also risen amid concerns over domestic production and tighter supplies. Rising demand ahead of the festive season is adding further pressure to the market.
For sweet makers, the increase in jaggery prices could translate into higher production costs, particularly for traditional sweets that use jaggery as a key ingredient. Consumers could eventually see the impact through higher prices during the upcoming festive period.
Fresh jaggery production from October could ease some of the supply pressure. However, the longer-term price outlook will depend on sugarcane availability, production levels and demand. If supplies remain tight, the elevated prices could continue well beyond the festive season.
