‘Sugar is being imported! What kind of ‘self-reliance’ is this?’:Kharge asks 3 questions as sugar prices rise by ₹19 in 3 months, up 40%

Congress president Mallikarjun Kharge has targeted the Centre over rising sugar prices and declining stocks, questioning the government’s sugar imports and ethanol policy ahead of the festive season. In a post on X on Saturday, Kharge said the “bitterness” of the Modi government’s policies had mixed with the sweetness of sugar before the festivals. Kharge questioned why sugar stocks in India, one of the world’s largest sugar producers and exporters, had fallen to a nine-year low. He also asked why the government had to allow 10 lakh tonnes of duty-free sugar imports. Calling the situation inconsistent with the government’s ‘Atmanirbhar Bharat’ push, Kharge questioned why India was importing sugar while diverting sugarcane towards ethanol production for petrol blending. Centre rejects link between ethanol and sugar prices The Ministry of Consumer Affairs, Food and Public Distribution, however, said the recent increase in sugar prices was not caused by the diversion of sugar for ethanol production. According to the ministry, the share of sugar diverted for ethanol fell from around 12% in 2022-23 to about 9% in 2025-26. At the same time, nearly three-fourths of India’s ethanol production now comes from grains, particularly maize. The government attributed the increase in sugar prices to lower domestic production, higher demand ahead of festivals, weather-related crop damage, tight international supplies, and hoarding and speculation. Sugar production estimate cut India’s sugar production this season is estimated at 306 lakh metric tonnes (LMT), down from the earlier projection of 343 LMT. The decline has been attributed to diseases such as red rot and top borer, along with waterlogging caused by excessive rainfall in sugarcane-growing areas. Despite the lower production estimate, the ministry said domestic stocks would be sufficient to meet demand until the new crushing season begins in October. Global sugar shortage pushes prices higher International market conditions have also contributed to price pressures. The global sugar market is estimated to face a deficit of around 33 LMT in 2026-27. International sugar prices rose from $474 per tonne on June 30 to $552 per tonne on August 20, marking an increase of more than 16% in less than two months. Centre tightens stock controls To prevent hoarding and speculative activity, the government has imposed a 400-tonne stock limit on dealers until November 30. A 15-day stock limit for bulk consumers will come into effect from September 1. The Centre and state governments have also formed joint teams to conduct physical verification of sugar stocks at mills in an effort to prevent artificial shortages in the domestic market.