Jaggery prices climb as consumers seek a natural alternative to refined sugar

New Delhi: With some consumers increasingly opting for jaggery as a natural, less-processed alternative to refined sugar, prices of the traditional sweetener have risen amid high sugar prices, according to three people and government data reviewed by Mint.

According to Department of Consumer Affairs data, the average retail price of jaggery rose 10% to ₹67 per kg as on 15 September from a month earlier. In comparison, the average retail price of sugar 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.

India is the world's largest producer of jaggery and accounts for more than 70% of the global output of around 13 million tonnes annually. Traditionally used in Indian households and food preparations, jaggery is increasingly being positioned as a healthier alternative to refined sugar, supported by growing consumer interest in natural and traditional foods.

“Jaggery prices are rising amid increasing consumer demand. There is also a psychological factor at play. When sugar prices rise, consumers tend to perceive jaggery as a relatively attractive alternative, which can further support its demand and prices,” said Raman Singla, a Delhi-based trader.

Close to a third of India's sugarcane production is estimated to be used for jaggery production, highlighting the importance of the traditional sweetener in the country’s sugarcane economy. India’s sugarcane production is estimated to have reached 500 million tonnes in 2025-26, according to the third advance estimate released by the ministry of agriculture and farmers welfare.

India's packaged jaggery market, valued at around $800 million, is also seeing growing demand. The shift towards packaged and branded jaggery could also support the formalization of a market that has traditionally been dominated by small and unorganized producers.

Apart from stronger demand, lower production in the last sugar season has also pushed up jaggery prices, according to manufacturers.

“The availability of sugarcane was lower last year, which resulted in lower production and, consequently, a spike in jaggery prices,” said Avneesh Kumar, proprietor, Avneesh Jaggery Industry, Bijnor, Uttar Pradesh. Jaggery production in India is dominated by the unorganised agro-processing sector.

“Jaggery prices are likely to come down in the coming days, as the recent increase has been driven largely by temporary supply-side factors,” said a senior government official on condition of anonymity.

Queries emailed to the spokespersons of department of consumer affairs remained unanswered till press time.

“Gur (jaggery) prices are governed by sugar prices and are normally equal to, or sometimes slightly higher than, sugar prices. The recent rise in sugar prices was a situation created by traders, dealers and producers. India’s annual jaggery production is approximately 10 million tonnes, plus or minus 5-8%. The organised sector accounts for hardly 10%, while the rest is in the unorganised sector. There has been no significant increase in the organised sector in the absence of supportive government policies,” said K.P. Singh, chief executive, Hans Heritage Jaggery and Farm Produce.

The rise in jaggery prices is also partly due to higher consumption amid changing perceptions of its health benefits, Singh added.

“During the Covid-19 pandemic, jaggery consumption increased as people were informed by the Ayurveda industry that jaggery could help boost immunity. It is a proven fact that sugar provides energy but is not a food, whereas gur is a food containing several micronutrients, including iron, vitamins, protein, calcium, magnesium, potassium and phosphorus,” Singh said.

However, nutrition experts caution against viewing jaggery as a significantly healthier alternative to sugar.

According to Anshul Singh, team lead, clinical nutrition and dietetics, Artemis Hospital, Gurugram, both sugar and jaggery are essentially added sugars that provide calories and can raise blood glucose levels.

“Jaggery is less processed than refined sugar and contains small quantities of minerals such as iron, calcium, magnesium and potassium. But these nutrients are limited and do not make jaggery a healthy food item. However, if you are looking for a naturally processed sweetener, jaggery might be the better choice. As with any sweetener, moderation is the key,” Singh said.

The domestic sugar market remains closely linked to the broader sweetener economy. Sugar production in the 2025-26 sugar season stood at around 28 million tonnes, broadly in line with estimated domestic consumption of 28-28.5 million tonnes a year. Institutional users, including food and beverage companies, hotels, restaurants and catering businesses, and processed-food manufacturers, account for an estimated 60-65% of total sugar demand, with the remainder consumed by retail households.