5 days ago
Congress Blames E20 Policy and Delayed Imports for Sugar Price Rise
Sugar became much more expensive in India during the period described.
Congress says the government did not produce or keep enough sugar for people.
It also says some sugar was used to make E20 fuel instead of being sold for food.
The government says several things caused the rise, including crop damage, strong demand, global shortages, speculation and hoarding.
India decided to import sugar from Brazil.
Congress says the imported sugar may arrive too late to help during the festivals.
The opposition also criticised the end of a cheaper ration-shop sugar programme.
Both sides disagree about who is mainly responsible for the higher prices.
Government figures show sugar prices rose from ₹48.18 per kilogram on July 20 to ₹64.33 on August 27.
Congress says lower production, reduced sugarcane cultivation and diversion of stocks to the E20 programme caused shortages.
The Centre attributes the increase to lower domestic output, crop damage, tighter global supplies, festive demand, speculation and hoarding.
India announced on August 20 that it would import 10 lakh tonnes of raw sugar from Brazil, but Congress says delivery and processing could extend beyond the festive season.
Congress says the government discontinued a subsidised ration-shop sugar scheme in 2017 and has worsened the burden on consumers.
- Who
- The Congress, including MP and general secretary Randeep Surjewala, criticised the Narendra Modi government; the Centre provided an alternative explanation for the price rise.
- What
- Sugar prices rose sharply, prompting a dispute over domestic production, the E20 programme, imports and government policy.
- Where
- India, with the raw sugar planned for import from Brazil.
- When
- Prices rose from July 20 to August 27; the government announced the Brazil import on August 20, during the 2025-26 sugar year described in the article.
- Why
- Congress attributes the crisis to lower output, reduced cultivation, stock diversion to E20 fuel and delayed imports, while the Centre cites production shortfalls, crop damage, global supply pressures, festive demand, speculation and hoarding.
Congress’s View
Centre’s Explanation
Main causes of the price rise
Congress’s View
Congress blames reduced sugarcane cultivation, the absence of a support price, lower opening stocks and diversion of sugar to the E20 programme.
Centre’s Explanation
The Centre attributes the increase to lower-than-expected domestic production, crop damage, tightening global supplies, increased festive-season demand, and speculation or hoarding by parts of the industry.
Timing of sugar imports
Congress’s View
Congress says the August 20 decision to import from Brazil came too late, because shipping and processing could delay availability beyond the festive season.
Centre’s Explanation
The government announced the import of 10 lakh tonnes of raw sugar from abroad as a response to the supply situation.
E20 policy and public interest
Congress’s View
Congress argues that using sugar for ethanol fuel contributed to a food shortage and said the policy benefited E20 fuel-producing companies at consumers’ expense.
Centre’s Explanation
The article reports the government’s argument that shifting toward ethanol can save foreign exchange by reducing reliance on imported crude oil.
Government responsibility
Congress’s View
Congress questioned the government’s intentions and criticised its 2017 decision to end the subsidised ration-shop sugar scheme.
Centre’s Explanation
The Centre’s stated explanation places responsibility on a combination of supply, weather, global-market, demand and industry-related factors rather than solely on government policy.
Key facts
- Price change
- Sugar rose from ₹48.18 per kilogram on July 20 to ₹64.33 on August 27, according to government figures.
- Planned import
- The government announced an import of 10 lakh tonnes of raw sugar from Brazil on August 20.
- Opening stock
- Congress said opening stock for 2025-26 was 50 lakh tonnes, compared with 80 lakh tonnes in 2024-25.
- Reported production
- Congress cited an Indian Sugar Mills Association figure of 275 lakh metric tonnes for 2025-26, versus a government projection of 343 lakh metric tonnes.
- Monthly consumption
- Surjewala said India consumes about 24 lakh tonnes of sugar monthly, rising to about 30 lakh tonnes during the festival season.
- Import timing
- Congress estimated 45 to 55 days for sea transport from Brazil and another 10 to 15 days for processing.
- Former subsidy scheme
- Congress said a ration-shop scheme providing 500 grams per person at ₹13.50 per kilogram was discontinued in 2017.
Quotes
Randeep Surjewala
Congress MP and general secretary
“You certainly can’t take the food out of people’s mouths — depriving them of sugar for their tea or festivals — just to produce fuel. Yet, this government — in its rush to boost the profits of E20 fuel-producing companies linked to them — failed to realise that they would trigger a sugar crisis in the country — something that has happened for the first time.”
telegraphindia.com
“They (Centre) knew back in April that they were short on sugar.... Why did you wait until August 20 (to import sugar from Brazil)?... Because the two-and-a-half-month festival season had to pass. They didn’t want that sugar to arrive. Only then would the rates for the hoarders here go up.”
telegraphindia.com
Sources
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