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Failed crops drive sugar and rice prices up before Deepavali 2026

Consumers in India face a surge in prices of essential commodities like onions and sugar, with onions up 97.8% and sugar 23.4% over the past year. The increase, attributed to failed crops due to poor rainfall, coincides with rising LPG costs, impacting festive season preparations.

BRIC Team
By BRIC Team · BRIC.TV
Published Oct 17, 2026 · 2 min read · 7 views
Failed crops drive sugar and rice prices up before Deepavali 2026

Key Takeaways

  • •Essential commodity prices surge in India ahead of festive season
  • •Failed crops due to inadequate rainfall drive price increases
  • •Consumers face higher costs for traditional sweets and snacks
  • •LPG prices also rise, adding financial strain during Deepavali

As the festive season approaches, consumers in India are grappling with a significant surge in the prices of essential commodities. Key ingredients for traditional sweets and snacks, such as sugar, rice, and pulses, have seen double-digit percentage increases, according to year-on-year data from the Department of Consumer Affairs.

Onion prices have nearly doubled, climbing 97.8% from ₹26.64 per kg on October 15, 2025, to ₹52.68 on the same date in 2026. Sugar prices, which had already hit new highs in August, have risen by 23.4% over the past year, reaching ₹57.42 per kg. Sunflower oil and jaggery have also seen substantial increases, with prices rising 16.9% and 15.7%, respectively.

Wholesale traders attribute this price escalation to failed crops, largely due to inadequate rainfall. Ashish Agarwal, a trader in Hyderabad's Maharajgunj market, highlighted the impact on the Bombay-Hyderabad route, a critical agricultural belt. He noted that other regions have faced similar challenges.

The price of pulses has also been affected. Tur dal, for instance, has risen from ₹94 per kg on October 16, 2025, to ₹136 on the same date in 2026. Chana dal, urad, and moong dal have experienced similar hikes, with prices reaching ₹90, ₹125, and ₹106 per kg, respectively.

Adding to the financial strain on consumers is the sharp increase in liquified petroleum gas (LPG) prices. In Chennai, the cost of a 19 kg commercial gas cylinder has surged by 67.7%, from ₹1,738 in September 2025 to ₹2,916 in September 2026. Meanwhile, the price of a 14.2 kg domestic cylinder in Hyderabad has risen by 9.8%, from ₹905 in October 2025 to ₹994 in October 2026.

These price hikes come at a time when households are preparing for Deepavali, a festival marked by elaborate cooking and celebrations. The increased cost of ingredients and cooking fuel is likely to impact both homemakers and sweet shop owners, who are integral to the festive economy.

As India is predominantly an agricultural economy, the lack of rain has had a cascading effect on the supply chain, leading to these price surges. The situation underscores the vulnerability of the agricultural sector to climatic variations and the broader implications for consumers nationwide.

#Telangana

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