Archive · 24 Aug 2026
Onion and Sugar Prices Raise Political Heat Before Festivals
Onions and sugar have become more expensive before the festival season.
This makes it harder for families to pay for everyday food.
The Congress party criticized the government over rising prices.
The government said onion crops were hurt by weak or delayed rains and bad weather.
It said sugar production was reduced by crop diseases and too much rain.
To help, the government is moving onions by special trains and allowing raw sugar imports.
Officials said enough sugar should remain available until the next crushing season begins in October.
Critics still disagree with some government decisions, including its ethanol and sugar policies.
The price increases are politically important because elections are due next year.
Onion prices rose by up to 76% in one month, while wholesale rates doubled in some states.
The government attributed onion shortages to lower output, delayed monsoons and weather damage to Kharif crops.
Sugar prices increased from Rs 48.18 per kg on 20 July 2026 to Rs 55.70 on 20 August 2026.
The Centre announced onion shipments, raw sugar imports and other measures to improve availability and control prices.
Congress and industry critics questioned the government’s inflation response, sugar policy, farmer payments and ethanol diversion.
- Who
- The Centre, Congress leader Jairam Ramesh, Union Minister Pralhad Joshi, industry representatives and consumers.
- What
- Rising onion and sugar prices have triggered criticism and government measures to increase supplies and stabilize prices.
- When
- The issue intensified ahead of the festival season; sugar prices rose between 20 July and 20 August 2026.
- Where
- India, including onion-producing states such as Maharashtra and markets supplied from Nashik.
- Why
- Onion prices were linked to lower output, delayed monsoons and weather damage, while sugar prices were linked to lower production caused by crop diseases and waterlogging.
Government explanation and response
Opposition and industry concerns
Causes of higher prices
Government explanation and response
The Centre attributed onion increases to lower output, delayed monsoon rains and weather-related damage, and blamed sugar increases on crop diseases and waterlogging rather than ethanol diversion.
Opposition and industry concerns
Congress and critics argued that the government must explain how poor and middle-class households can manage rising costs, while industry voices highlighted the gap between projected and initial sugar production.
Measures to control prices
Government explanation and response
The government said it was increasing onion supplies through Kanda Express trains and addressing sugar availability through temporary raw sugar imports and other measures.
Opposition and industry concerns
Experts and industry representatives criticized the decision to import 1 million tonnes of raw sugar and continued to question the government’s broader sugar policy.
Ethanol and sugar policy
Government explanation and response
The government said it was incorrect to attribute the recent sugar price increase to diversion of sugar for ethanol production.
Opposition and industry concerns
Critics continued to raise concerns about ethanol diversion, sugar exports and the government’s handling of farmer payments.
- Onion price increase
- Prices rose by up to 76% in one month, according to Congress leader Jairam Ramesh.
- Wholesale onion prices
- Wholesale rates doubled in some states.
- Sugar price change
- The government reported an increase from Rs 48.18 per kg on 20 July 2026 to Rs 55.70 per kg on 20 August 2026.
- Onion supply response
- Kanda Express trains are carrying onion stocks from Nashik to Delhi, Chennai, Kochi and Guwahati.
- Raw sugar imports
- The Centre permitted imports of 1 million tonnes of raw sugar.
- Sugar production estimate
- Current-season production is expected to be around 306 LMT, compared with an initial estimate of about 343 LMT.
- Expected sugar availability
- The government said available stocks should meet domestic demand until the new crushing season begins in October.