Sugar prices soar; Centre cites lower output due to red rot, El Nino

A political row has erupted over soaring sugar prices. The Centre blames lower production due to red rot disease and El Nino, while the opposition questions the government's sugar policy, farmer payments and diversion for ethanol production.

A political row over rising sugar prices has intensified, with the Centre attributing the increase to lower production linked to red rot disease and El Nino conditions, while opposition leaders have questioned the government's sugar policy, farmer payments and diversion of sugarcane for ethanol production.

The development comes after retail sugar prices rose from Rs 48.18 per kg on July 20 to Rs 55.70 per kg on August 20, according to the Ministry of Consumer Affairs, Food and Public Distribution.

Government's Stance on Price Rise

Union Minister Pralhad Joshi said the government was concerned over the decline in sugar production, attributing it to red rot disease and El Nino conditions that have affected agricultural output in India and globally. He said the government was taking several measures ahead of the festival season, including temporary imports of raw sugar, to address supply concerns.

Speaking to the media, Joshi said, "Because of the red rot disease, which was very unexpected, and El Nino, overall agricultural production, including sugar, has come down not only in India but globally...we are very concerned about it, which is why we have immediately taken several measures. India's requirement is around 280 lakh tonnes, and as of today...we have a surplus of more than 20 to 25 lakh tonnes." He said India's annual sugar requirement is around 280 lakh tonnes and the country currently has a surplus of more than 20-25 lakh tonnes. "Import measures are being taken as the festival season is approaching, and there are many major festivals...we have already taken many measures, including raw sugar imports as a temporary measure," he further said.

Opposition Slams Centre's Policies

The issue, however, quickly turned political, with opposition leaders questioning the Centre's handling of sugar production, farmer payments and the diversion of sugarcane towards ethanol production. Congress General Secretary and MP Randeep Singh Surjewala alleged that delayed payments to sugarcane farmers were discouraging cultivation. He also questioned the need for sugar imports, saying India had previously been an exporter. "... There is a Sugar Control Order in the country, and we determine sugar prices... You do not pay farmers for the sugarcane they sell for up to a year; why would they cultivate it? We used to export sugar, but for the first time, sugar is being imported," Surjewala said.

Congress MP Manish Tewari also criticised the government over rising prices of essential commodities, including sugar, potatoes, onions and garlic. He raised concerns over sugarcane being diverted for ethanol production, arguing that this could affect the availability of raw material for sugar production. "It is extremely unfortunate that sugar prices are skyrocketing. The prices of everyday essentials, whether potatoes, onions, or garlic, are also soaring. Meanwhile, sugarcane is being diverted for ethanol production. If the raw material meant for producing sugar is instead being used as fuel for vehicles, what will happen to the country? There needs to be a thorough investigation to identify the business interests and individuals profiting from this situation, as the burden ultimately falls on the common people, who are forced to pay inflated prices for sugar and other daily necessities," Tewari said.

Shiv Sena (UBT) MP Sanjay Raut criticised the diversion of sugarcane towards ethanol production and urged the government to engage directly with families affected by rising household expenses. "In these 12 years, what has become cheaper? It has been 12 years under Modi ji. What has become cheaper? Death has become cheap. Accidents have become cheap. Suicides have become cheap. Nothing else has. Regarding sugarcane used for making sugar, the entire supply is now being diverted towards ethanol production. You have told your ministers to visit universities and engage in dialogue with the youth. Go to those children's homes, into their kitchens, and speak with their mothers and fathers," Raut said.

Varanasi Authorities Assure Sufficient Stock

Further, authorities in Varanasi said sufficient sugar stocks are available in the district and across Uttar Pradesh, asserting that there is no shortage of sugar in the market and urging consumers to purchase the commodity as per their requirements from the open market.

Additional District Magistrate (Civil Supply) Amit Kumar Bhartiya said officials and employees of the Food and Logistics Department are regularly monitoring sugar availability and regulating prices in the market. The administration also directed wholesale and retail traders in the district to regularly report their available sugar stocks on the portal of the Ministry of Food and Public Distribution, Government of India.

Ministry Refutes Ethanol Diversion Claims

According to the Ministry of Consumer Affairs, Food & Public Distribution, the Centre is closely monitoring market developments and has initiated a series of regulatory and supply-side measures to maintain availability and price stability for consumers. "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. (ANI)

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