Gehlot blames ethanol blending for sugar price rise, government rejects claim

Former Rajasthan chief minister Ashok Gehlot on Saturday accused the Centre of burdening people through increased ethanol blending in petrol, claiming the policy had pushed up sugar prices by Rs 14-17 per kg in 15 days. The Congress leader alleged that sugarcane diversion towards ethanol had reduced sugar availability, affected vehicle engines, and cut mileage, calling it a direct assault on people's hard-earned money.

The government rejected the charge, saying the share of sugar diverted for ethanol had fallen from about 12% in 2022-23 to around 9% in 2025-26, and that nearly three-fourths of ethanol now comes from grains. The food ministry attributed the price rise to lower domestic output, festive demand, weather damage, global supply tightness, and speculation.

India's sugar output for the 2025-26 season is estimated at 306 lakh tonnes, about 11% below initial estimates. The government has allowed duty-free imports of 10 lakh tonnes of raw sugar. Retail sugar prices rose to Rs 58.2 per kg, up 26% from a year ago.