'What kind of self-reliant India is this?': Kharge slams Centre over sugar price hike
'What kind of self-reliant India is this?': Kharge slams Centre over sugar price hike, ethanol policy
M.U.H
21/08/202630
Congress President Mallikarjun Kharge on Saturday slammed the Centre over increasing sugar prices and low sugar stocks, alleging that the "bitterness of the Modi government's policies has seeped into the sweetness of sugar."
In a post on X, Kharge posed three direct questions to the PM Modi government and questioned its 'Atmanirbhar Bharat' claim.
"Before the festivals, the bitterness of the Modi government's policies has seeped into the sweetness of sugar. Three direct questions to the Modi government: 1. Why is the sugar stock in India, the world's largest sugar producer and exporter, at its lowest level in 9 years today? How did we reach the point of halting exports and importing 1 million tons of sugar duty-free? 2. Sugar has become nearly 40% more expensive in three months--who is responsible for this price hike burdening the public right before the festivals? 3. When there is a shortage of sugar in the country, and the government is importing sugar from abroad, why isn't the policy of diverting sugarcane and grain to produce Ethanol for E20 being reviewed? What kind of 'Self-Reliant India' is this?," Kharge wrote.
Targeting the Centre's ethanol blending policy, the Congress chief added, "First, sugar production declined, then stocks reached their lowest level in 9 years, now we're importing sugar from abroad and on the other hand, we're throwing sugarcane into Ethanol to blend with petrol!."
On Friday, the Ministry of Consumer Affairs, Food and Public Distribution said the recent rise in retail sugar prices from Rs 48.18 per kg on July 20 to Rs 55.70 per kg on August 20 is due to a combination of factors and not ethanol diversion.
"It is incorrect to attribute the recent increase in sugar prices to diversion of sugar for ethanol production," the Ministry noted, explaining that the share of sugar diverted for ethanol declined from around 12 per cent in 2022-23 to around 9 per cent in 2025-26, while nearly three-fourths of the country's ethanol output now originates from grains, particularly maize.
The government attributed the price rise to lower-than-expected domestic production, increased demand ahead of the festive season, weather-related damage to the sugarcane crop, tightening global supplies and speculation and hoarding.
Domestic production for the current season is projected at 306 LMT against an initial estimate of 343 LMT, impacted by Red Rot and Top Borer disease and waterlogging due to excess rainfall. The Ministry said adequate stocks are available to cover domestic demand till the new crushing season begins in October.
The pressure on supplies reflects a broader international trend. The global sugar deficit for 2026-27 is estimated at 33 LMT due to adverse weather patterns, driving international prices up from USD 474 per tonne on June 30 to USD 552 per tonne on August 20, a rise of over 16 per cent in under two months.
To curb domestic speculation, a stock limit of 400 tonnes remains in effect for dealers until November 30, while bulk consumers face a 15-day holding cap starting September 1. Joint Central and State teams are conducting physical stock verifications at mills to prevent artificial scarcity.
