1 week ago
Sugar Prices Rise Amid Production Concerns and Political Clash
Sugar has become more expensive in India.
The price rose between July 20 and August 20.
The government says less sugar was produced because of a plant disease called red rot and El Nino weather conditions.
It says the country still has more sugar than it normally needs.
The government plans to bring in some raw sugar from other countries before the festival season.
Opposition leaders say delayed payments to farmers may discourage them from growing sugarcane.
They also say too much sugarcane may be going toward making ethanol fuel instead of sugar.
The government disagrees and says less sugar is now being diverted to ethanol.
Officials in Varanasi and Uttar Pradesh say there is enough sugar available and no shortage in the market.
Retail sugar prices rose from Rs 48.18 per kg on July 20 to Rs 55.70 per kg on August 20, according to the Consumer Affairs Ministry.
Union Minister Pralhad Joshi attributed lower production to red rot disease and El Nino conditions, citing a national requirement of about 280 lakh tonnes and a surplus of more than 20-25 lakh tonnes.
The Centre said it was taking temporary raw sugar import measures ahead of the festival season to address supply concerns.
Opposition leaders questioned delayed farmer payments, sugarcane diversion for ethanol and the government’s broader sugar policy.
The Ministry rejected ethanol diversion as the cause of the price increase, saying sugar diversion fell from about 12 per cent in 2022-23 to about 9 per cent in 2025-26.
- Who
- The Centre, Union Minister Pralhad Joshi, opposition leaders, sugarcane farmers and food-supply authorities are involved.
- What
- Retail sugar prices increased, prompting a dispute over production, imports, farmer payments and sugarcane use for ethanol.
- Where
- The issue concerns India, with availability also assessed in Varanasi and Uttar Pradesh.
- When
- Prices rose between July 20 and August 20; the report was published on August 24, 2026.
- Why
- The Centre cites red rot disease, El Nino conditions and lower production, while opposition leaders point to farmer-payment delays and ethanol diversion.
Opposition leaders
Centre and authorities
Cause of higher prices
Opposition leaders
Opposition leaders questioned the government’s sugar policy and argued that delayed payments to sugarcane farmers and the diversion of sugarcane for ethanol may be contributing to higher prices.
Centre and authorities
The Centre attributed the increase to lower production caused by red rot disease and El Nino conditions, and said it was incorrect to blame ethanol diversion.
Sugarcane and ethanol
Opposition leaders
Randeep Singh Surjewala, Manish Tewari and Sanjay Raut raised concerns that using sugarcane for ethanol could reduce the raw material available for sugar production.
Centre and authorities
The Consumer Affairs Ministry said the share of sugar diverted for ethanol had declined, while nearly three-fourths of ethanol production now comes from grains, particularly maize.
Supply situation and imports
Opposition leaders
Opposition criticism questioned why India needed sugar imports after previously exporting sugar and linked the situation to government policy.
Centre and authorities
The Centre said India still had a surplus of more than 20-25 lakh tonnes but was arranging temporary raw sugar imports ahead of major festivals; Varanasi authorities reported no local shortage.
Key facts
- Price change
- Retail sugar rose from Rs 48.18 per kg on July 20 to Rs 55.70 per kg on August 20.
- National requirement
- India’s annual sugar requirement was stated as around 280 lakh tonnes.
- Reported surplus
- The Centre said current stocks exceed requirements by more than 20-25 lakh tonnes.
- Government response
- The Centre is taking temporary raw sugar import measures ahead of the festival season.
- Production pressures
- The Centre attributed lower production to red rot disease and El Nino conditions.
- Ethanol diversion
- The Ministry said sugar diversion for ethanol declined from around 12 per cent in 2022-23 to around 9 per cent in 2025-26.
- Local availability
- Authorities in Varanasi and Uttar Pradesh said there was sufficient sugar and no market shortage.
Quotes
Randeep Singh Surjewala
Congress general secretary and Member of Parliament who criticised sugar policy and farmer payments
“Because of the red rot disease, which was very unexpected, and El Nino, overall agricultural production, including sugar, has come down not only in India but globally...we are very concerned about it, which is why we have immediately taken several measures.”
thehindubusinessline.com
“We used to export sugar, but for the first time, sugar is being imported.”
thehindubusinessline.com
Sources
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