Punjab Newsline | New Delhi
Congress President Mallikarjun Kharge on Saturday targeted the Centre over rising sugar prices and declining stock levels, alleging that the government’s policies have turned the sweetness of sugar bitter ahead of the festive season.
In a post on X, Kharge questioned why India, one of the world’s largest sugar producers and exporters, has seen sugar stocks fall to a nine-year low. He also raised concerns over the Centre’s decision to allow the duty-free import of 1 million tonnes of raw sugar until October 31 to ease supply pressures.
Posing three questions to the government, Kharge asked what kind of “Atmanirbhar Bharat” imports sugar from abroad while simultaneously diverting sugarcane towards ethanol production for fuel blending. He argued that the move reflects policy contradictions that are affecting consumers and the sugar market.
Sugar prices have climbed sharply across several cities, reaching as high as ₹70 per kilogram. Over the past three months, prices have risen by nearly 40%, or around ₹19 per kg. Apart from sugar, prices of jaggery have increased by 24%, rice by 16%, and maize flour by 11% during the same period.
Industry data shows that sugar stocks with mills have declined significantly. Opening stocks before the current crushing season stood at 32 lakh tonnes, down from 47 lakh tonnes a year earlier. The reduced availability of sugar is being cited as one of the key reasons behind the price surge.
Centre, however has rejected claims that ethanol production is primarily responsible for the increase in sugar prices. Food Secretary Sanjeev Chopra said the rise is linked to multiple factors, including lower domestic production, higher festive demand, weather-related damage to sugarcane crops, and supply pressures in the international market.
According to Chopra, the average retail price of sugar increased from ₹48 per kg on July 20 to ₹56 per kg, while ex-mill prices jumped from ₹47-48 per kg to ₹62 per kg within just a week to ten days. He described the sudden price hike by sugar mills as unjustified.
Government also pointed out that the role of sugar in ethanol production has declined in recent years. Officials said only about one-fourth of the country’s ethanol now comes from sugar-based sources, while the rest is largely produced from grains such as maize. The share of sugar diverted for ethanol production has fallen from 12% in 2022-23 to around 9% in 2025-26, with about 28 lakh tonnes of sugar diverted for ethanol this season.
However, the All India Distillers Association noted that ethanol production last year consumed large quantities of both grains and sugarcane-based feedstock. The association also warned that reduced availability of damaged grains has pushed up the prices of animal feed and poultry feed by 8-10%.
