Uttar Pradesh Sugar Mills Association Rejects Ethanol Blending Link To Sugar Price Rise, Says Stocks Adequate

Lucknow, August 25, 2026: The Uttar Pradesh Sugar Mills Association (UPSMA) has dismissed allegations that using sugar for Ethanol Blended Petrol (EBP) is the cause of recent sugar price hikes. The association claims the allegations lack factual support. In a statement issued on Tuesday, UPSMA said the amount of sugar used for ethanol production has been decreasing in recent years.

The group highlighted that Uttar Pradesh remains the nation's largest supplier of ethanol. UPSMA expressed concern over reports and public worries about sugar availability and rising prices. The association confirmed that all its member mills have sufficient sugar stocks, with no shortage at the mill level. UPSMA also rejected reports of artificial scarcity and called hoarding or unnecessary stock accumulation a cause for concern.

The association maintains continuous communication with state and central government officials to ensure timely actions based on demand and policy. Uttar Pradesh government is keeping a close watch on sugar prices and taking action against those spreading rumors or misinformation. Uttar Pradesh leads sugar production with 121 mills, 95 of them private sector.

These mills are essential for domestic sugar supplies, and UPSMA's members release sugar according to the monthly sale quota from the Department of Food and Public Distribution. UPSMA urges consumers and media to ignore unverified information. The association, along with central and state governments, is committed to maintaining stable and uninterrupted sugar market supplies.