1 week ago

Government Rejects Ethanol Link as Sugar Prices Rise, Permits Imports

Sugar has become more expensive in India recently.

The government says making ethanol from sugar is not the reason.

It says there is enough sugar for people to buy.

Sugar prices rose by about ₹8 per kilogram in one month.

The government says less sugar is being used for ethanol now than before.

It has limited how much sugar dealers can store.

Bulk buyers will also be allowed to keep only 15 days of supplies.

The government will let 10 lakh tonnes of sugar enter the country without import duty to help lower prices.

Key facts

Retail sugar price: The all-India average reached ₹56 per kg.
Recent price increase: Sugar prices rose by around ₹8 per kg over the last month.
Ethanol diversion: About 9% of sugar was diverted for ethanol in 2025-26, compared with 12% in 2022-23.
Sugar dealer stock limit: Dealers nationwide may hold up to 400 tonnes until November 30.
Bulk consumer limit: From September 1, bulk consumers may not hold more than 15 days of consumption.
Duty-free imports: The government allowed duty-free imports of 10 lakh tonnes through October 31.
Ethanol feedstocks: About one-fourth of domestic ethanol comes from sugar feedstock, with most of the remainder sourced from grains, mainly maize.

thehindubusinessline.com · 1 week ago