Congress president Mallikarjun Kharge on Saturday targeted the Centre over rising sugar prices and declining domestic stocks, questioning the government’s sugar and ethanol policies ahead of the festive season.
In a post on X, Kharge said the “bitterness” of the Modi government’s policies had disappeared into the “sweetness” of sugar ahead of the festivals.
Kharge raised three questions over the current sugar situation. He questioned why India’s sugar stocks have fallen to a nine-year low, despite the country being one of the world’s largest sugar producers and exporters.
He also asked why the government had to permit duty-free imports of 10 lakh tonnes of sugar and why sugar prices had increased by around 40% in three months.
Kharge questions E20 ethanol policy
Kharge also called for a review of the government’s policy of producing ethanol from sugarcane and grains for the E20 fuel programme.
He questioned the rationale behind using sugarcane for ethanol production at a time when domestic sugar supplies are declining and India is importing sugar.
Linking the issue to the government’s ‘Atmanirbhar Bharat’ push, Kharge asked why the ethanol policy was not being reconsidered to address the domestic sugar shortage.
Centre rejects ethanol policy link
The Ministry of Consumer Affairs, however, has rejected the claim that the rise in sugar prices is linked to the ethanol policy.
According to the ministry, the retail price of sugar rose from ₹48.18 per kg on July 20 to ₹55.70 per kg on August 20.
The government attributed the increase to several factors, including lower domestic sugar production, higher demand ahead of festivals, weather-related crop damage, pressure from international markets, and hoarding and speculation.
The contrasting positions have brought the government’s sugar supply management and ethanol blending policy into focus ahead of the festive season.
