Jaggery prices have surged by around 25% over the past fortnight in major producing states such as Maharashtra and Uttar Pradesh, putting further pressure on sweet makers and raising the prospect of higher prices for consumers ahead of the festive season.
Industry manufacturers and traders said jaggery prices have risen by around 25-30% across the country in August, broadly tracking the upward movement in sugar prices.
The recent price surge has been driven by tightening supplies, particularly in Maharashtra, where a government crackdown on units allegedly producing adulterated jaggery has affected market availability over the past three months.
Prices are expected to remain firm until October, when fresh jaggery production is likely to begin and supplies improve. However, industry veterans warn that elevated prices could persist beyond the immediate production cycle.
A likely decline in sugarcane availability next year could keep jaggery prices under pressure through 2027, adding to costs for sweet manufacturers and consumers.
The increase comes at a critical time for the sweets industry, with demand typically rising during the festive season. Higher jaggery costs could therefore translate into more expensive traditional sweets and other jaggery-based food products.
With both sugar and jaggery prices moving higher, sweet makers are likely to face increased input costs in the coming months, while consumers may have to pay more for festive purchases.