# Sugar prices may rise further before festive season, economist warns

2026-08-24T22:21:09+00:00 | Governance | Indian Opinion Desk

Corroboration: 2 independent outlets

Sugar prices have surged sharply ahead of the festive season, with average retail prices 35 percent higher than last August. Agricultural economist Ashok Gulati told India Today that lower sugar output, depleted stocks and ethanol diversion are driving the surge. He said the government should have permitted imports four to five months ago, and that delayed action could worsen supplies. The Union government has announced duty-free imports and tighter stockholding limits for bulk traders. The Indian Sugar Mills Association blamed trader speculation for the price spike and denied any shortage. The new crushing season begins in mid-October, when fresh supplies are expected.

## Indian Opinion Analysis

India Today's framing is built on a single source: agricultural economist Ashok Gulati, who is sharply critical of the government. The article leads with his warning that delayed imports and tight controls could worsen prices before the festive season, and it gives extensive space to his call for sector liberalisation. New Indian Express, by contrast, reports the government's own measures, duty-free imports, stockholding limits, and includes the government's denial that ethanol diversion is to blame, though it notes the E20 rollout will dent sugar supply. It does not name Gulati or any critic. The coverage gap is clear: India Today amplifies explicit government blame, while New Indian Express reports official actions and ISMA's speculation theory without citing any independent critic. A balanced reading is that the government's own steps acknowledge a problem it publicly minimises, and the real pressure point to watch is the new crushing season in mid-October.

## Coverage

Coverage: 2 sources, 1 pro-government, 1 government-critical
- indiatoday.in (government critical) <https://www.indiatoday.in/business/story/sugar-prices-surge-ashok-gulati-lower-output-low-stocks-ethanol-diversion-2979117-2026-08-25?utm_source=rss>
  Leads with economist blaming government delay and demanding liberalisation
- newindianexpress.com (pro government) <https://www.newindianexpress.com/editorial/2026/Aug/24/sharper-estimates-clearer-planning-to-address-sugar-high>
  Reports government measures and denial, with minimal criticism

This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources. Last updated 2026-08-25T00:22:54+00:00.

Tags: Ashok Gulati, ethanol, Food Ministry, sugar
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How this brief was made: an AI model read the reports linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. Stance labels are editorial classifications of how each outlet framed this story, assigned by the same model, not ratings of the outlets. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/
