Archive · 25 Aug 2026
Uttar Pradesh Sugar Mills Reject Ethanol Link To Rising Prices
Sugar prices have recently gone up in Uttar Pradesh.
The state’s sugar mills association says this is not because too much sugar is being used to make ethanol.
It says the amount of sugar used for ethanol has actually fallen in recent years.
The association also says its mills have enough sugar stored.
It expects those stocks to meet household needs during the festival season.
The group says hoarding or keeping too much sugar may affect prices.
Government officials are watching the market and may act against misinformation.
The association asked people to trust verified information and avoid panic buying.
The Uttar Pradesh Sugar Mills Association denied that ethanol production is driving higher sugar prices.
The association said sugar diverted for ethanol has declined over recent years.
It said member mills have sufficient stocks and reported no mill-level shortage.
UPSMA warned that hoarding, stock accumulation, rumors, and misinformation may worsen price fluctuations.
Uttar Pradesh has 121 sugar mills and releases sugar under government-issued monthly quotas.
- Who
- The Uttar Pradesh Sugar Mills Association and its member sugar mills.
- What
- The association rejected claims that ethanol blending is causing rising sugar prices or an impending shortage.
- When
- August 25, 2026.
- Where
- Uttar Pradesh, India.
- Why
- UPSMA said ethanol-related sugar diversion has declined, mill stocks are adequate, and reports of shortage are unsupported.
UPSMA’s Position
Reported Concerns
Cause of rising prices
UPSMA’s Position
UPSMA said ethanol production is not responsible and that sugar diversion for ethanol has declined.
Reported Concerns
Reports and public apprehensions linked the use of sugar for the Ethanol Blended Petrol programme to rising prices.
Sugar availability
UPSMA’s Position
The association said mills have sufficient stocks and there is no shortage at the mill level.
Reported Concerns
Reports cited concerns about an impending shortage and domestic sugar availability.
Reasons for price fluctuations
UPSMA’s Position
UPSMA identified hoarding or unnecessary accumulation of stocks, along with rumors and misinformation, as concerns.
Reported Concerns
The reported price rise prompted concerns about supply conditions, though the articles did not establish a separate cause.
- Association
- Uttar Pradesh Sugar Mills Association (UPSMA)
- Sugar mills in Uttar Pradesh
- 121 mills, including 95 private-sector mills
- Stock position
- UPSMA said member mills have adequate sugar stocks.
- Ethanol diversion
- The association said sugar used for ethanol production has declined over recent years.
- Supply mechanism
- Members release sugar according to monthly sale quotas issued by the Department of Food and Public Distribution.
- Festival demand
- UPSMA said available stocks are sufficient for household consumption during the festival season.
- Government response
- The Uttar Pradesh government is monitoring sugar prices and action is being taken against alleged misinformation.