Sugar Price Rise Not Due to Ethanol Diversion, Says Centre
· Business · Indian Express, Times of India, Hindustan Times
Retail sugar prices rose to Rs 55.70 per kg on August 20 from Rs 48.18 per kg a month earlier, prompting a government clarification in New Delhi. The Ministry of Consumer Affairs, Food & Public Distribution stated that the price increase is unrelated to ethanol production, noting that sugar diversion for ethanol declined to around 9% in the 2025-26 season from 12% in 2022-23. The government attributed the price surge instead to lower domestic output, crop damage from weather and disease, rising festive-season demand, tighter global supplies, and hoarding. To stabilize the market, authorities have imposed a nationwide stock limit of 400 tonnes on sugar dealers until November 30 and barred bulk consumers from holding stocks exceeding 15 days of consumption from September 1. Additionally, the administration approved duty-free imports of 1 million tonnes of raw sugar and ordered joint teams of officials to physically verify mill stocks.
Why it matters
Indian consumers and bulk buyers face higher sugar costs ahead of the festive season, while sugar dealers and mills must comply with new stock limits and physical verifications aimed at curbing hoarding.
Read the original report — Indian Express
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