Now Reading: Govt rejects ethanol link to rising sugar prices
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Govt rejects ethanol link to rising sugar prices
The central government on Friday rejected claims that sugar diversion for ethanol production is driving the recent price rise. Retail sugar prices climbed to Rs 55.70 per kg on August 20 from Rs 48.18 a month earlier. The Ministry of Consumer Affairs, Food & Public Distribution said the share of sugar diverted for ethanol has fallen to about 9% in 2025-26 from 12% in 2022-23, with three-fourths of ethanol now coming from maize.
The ministry attributed the price surge to lower-than-expected domestic production of 30.6 million tonnes, down from an initial estimate of 34.3 million tonnes, due to crop diseases and waterlogging. Other factors include festive-season demand, tightening global supplies, and hoarding. The government has imposed stock limits of 400 tonnes on dealers, capped bulk consumer holdings at 15 days' requirement, approved duty-free imports of 1 million tonnes of raw sugar, and ordered joint stock verifications at mills.
National Herald India, however, frames the crisis as a consequence of the ethanol policy, arguing that fuel blending has strained sugar stocks and that the government ignored warnings. It says prices in several markets have reached Rs 70 per kg, up from Rs 45 three weeks ago, and that the import of 1 million tonnes will not be enough to break the price spiral.
Indian Opinion Analysis
The pro-government framing, adopted by Indiatvnews, Deccan Herald and Freepress Journal, leads with the official denial and attributes the price rise to crop disease, weather, and demand, while highlighting the declining share of sugar in ethanol. National Herald takes a government-critical stance, framing the crisis as a direct result of ethanol policy and dismissing the hoarding explanation. The measured read: ethanol diversion has reduced in percentage terms, but absolute sugar stocks are under pressure from multiple causes including weather and global markets. Watch the October crushing start and import arrival for price relief.
Coverage: 4 sources, 3 pro-government, 1 government-critical
Sources (4): indiatvnews.com (pro government), deccanherald.com (pro government), freepressjournal.in (pro government), nationalheraldindia.com (government critical)
This story was synthesised by AI from the 4 sources linked above. Methodology and corrections.
Updated: this story now draws on 4 sources.
