Sugar prices rise to Rs 80 per kg as traders, government trade blame

Retail sugar prices have surged from Rs 48 to Rs 70-80 per kg in some markets over the past month, drawing accusations of hoarding and price manipulation. Farmer leader Raju Shetty alleged that traders created an artificial shortage after the government banned exports, potentially making Rs 2,200 per tonne and causing a Rs 22,000-23,000 crore scam. The government attributed the price rise to lower domestic output, festive demand, weather damage and global supply constraints.

Maharashtra sugar commissioner Sanjay Kolte acknowledged a production drop from 15 lakh tonnes of cane crushed for ethanol last year to 18 lakh tonnes this year, but insisted stocks must be released within seven days as per guidelines. The government denied that ethanol diversion is the main cause, noting that ethanol's share from sugar fell from 12% to 9% over three years. Initial production estimates of 343 lakh tonnes have been revised down to 306 lakh tonnes against annual consumption of 280-290 lakh tonnes.