Centre says rise in sugar prices cannot be attributed to ethanol
Sugar prices have risen sharply in recent weeks, increasing from ₹48.18 per kg on July 20, 2026, to ₹55.70 per kg on August 20.
The Centre has refuted claims that ethanol production is responsible for the recent surge in sugar prices in India. The Ministry of Consumer Affairs stated that the share of sugar diverted for ethanol production has decreased from 12% in 2022-23 to 9% in 2025-26. They also noted that nearly three-quarters of the country's ethanol is now produced from grains, particularly maize.
The price increase is attributed to factors such as lower-than-expected domestic sugar production, increased demand ahead of the festive season, weather damage to sugarcane crops, global sugar supply tightening, and speculation and hoarding within the industry.
Brief written by urgent.news from Hindustan Times's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
