Archive · 27 Aug 2026
Congress Alleges Rs 36,000-Crore Sugar Scam Amid Price Rise
The Congress party says sugar has become much more expensive.
It accused the government of not acting after learning about a possible shortage.
Congress leader Randeep Surjewala said prices rose from Rs 40 to Rs 75 per kilogram.
He said families could pay much more for sugar during Dussehra and Diwali.
Congress estimated that people would use 12 million tonnes of sugar between August and November.
It said this could give hoarders and black-marketeers an extra Rs 36,000 crore.
The party also blamed lower production and sugarcane being used for E20 fuel.
It wants the government to bring back cheaper sugar through the Public Distribution System.
Congress alleged that the Modi government enabled a Rs 36,000-crore sugar scam benefiting hoarders and black-marketeers.
Randeep Surjewala said sugar prices had risen from Rs 40 to Rs 75 per kilogram.
He estimated that consumers would use about 12 million tonnes of sugar between August and November.
Congress claimed reduced production and stock diversion for E20 fuel contributed to the shortage.
Surjewala demanded restoration of subsidised sugar allocations through the Public Distribution System.
- Who
- The Congress party and its general secretary Randeep Surjewala; the allegations concerned the Modi government, hoarders and black-marketeers.
- What
- Congress alleged that government inaction and stock diversion contributed to rising sugar prices and a possible Rs 36,000-crore benefit for profiteers.
- When
- The allegations were made on Thursday; the article referred to sugar consumption between August and November and the Dussehra-Diwali festive season.
- Why
- Congress said the government failed to address an anticipated shortage, while reduced production and sugarcane use for E20 fuel lowered available stocks.
Congress allegations
Government position
Cause of higher prices
Congress allegations
Congress said government inaction, lower production and alleged stock diversion enabled hoarders and black-marketeers to profit.
Government position
The article does not report a response or alternative explanation from the Modi government.
E20 fuel policy
Congress allegations
Congress claimed that using sugarcane stocks for E20 fuel reduced sugar available to the public.
Government position
The article does not include the government's response to this claim.
Consumer support
Congress allegations
Congress demanded the restoration of subsidised sugar through the Public Distribution System.
Government position
The article does not state whether the government accepted or rejected the demand.
- Alleged amount
- Rs 36,000 crore
- Reported sugar price rise
- From Rs 40 to Rs 75 per kilogram
- Estimated consumption
- About 12 million tonnes between August and November
- Alleged additional cost
- At least Rs 30 per kilogram for consumers, according to Congress
- Claimed stock use
- Congress alleged that 32% of sugarcane stocks were used for E20 fuel between November 2025 and July 2026
- Congress demand
- Restore the scheme providing 500 grams of subsidised sugar per family member through the Public Distribution System