Jaggery prices have risen 10% to ₹67 per kg as of September 15, according to Department of Consumer Affairs data reviewed by Mint. This increase comes as sugar prices accelerated 15% to ₹59.25 per kg over the same period, driven by lower-than-expected production, rising demand ahead of the festive season, and weather-related cane crop damage. As reported by Mint, India is the world's largest producer of jaggery, accounting for more than 70% of global output of around 13 million tonnes annually. Close to a third of India's sugarcane production is estimated to be used for jaggery production, highlighting its importance in the country's sugarcane economy.
According to Delhi-based trader Raman Singla, jaggery prices are rising amid increasing consumer demand with psychological factors at play. When sugar prices rise, consumers tend to perceive jaggery as a relatively attractive alternative, which can further support its demand and prices. The shift towards packaged and branded jaggery is also supporting market formalization, with India's packaged jaggery market valued at around $800 million seeing growing demand. Lower production in the last sugar season has also contributed to jaggery price increases, as manufacturers report that reduced sugarcane availability resulted in lower production and consequently spiked jaggery prices.
The rise in jaggery prices is partly attributed to higher consumption amid changing perceptions of its health benefits. According to K.P. Singh, chief executive of Hans Heritage Jaggery and Farm Produce, during the Covid-19 pandemic, jaggery consumption increased as people were informed by the Ayurveda industry that jaggery could help boost immunity. Singh emphasizes that jaggery is a food containing several micronutrients including iron, vitamins, protein, calcium, magnesium, potassium and phosphorus, while sugar provides energy but is not a food. However, nutrition experts caution against viewing jaggery as a significantly healthier alternative to sugar, noting both are essentially added sugars that provide calories and can raise blood glucose levels.
Latest market data shows significant regional variations in jaggery pricing across India. As per Commodityonline, the average jaggery price stands at ₹4,251.57 per quintal (₹425.16 per kg), with the lowest price recorded at ₹1,490.19 per quintal and the highest at ₹6,550 per quintal. Regional variations are substantial, with Andhra Pradesh showing prices ranging from ₹1,500 to ₹5,400 per quintal, while Rajasthan commands premium rates of ₹6,550 per quintal. The price volatility reflects both supply-side constraints and regional demand patterns, with some areas experiencing significant price increases while others maintain more stable pricing.
