{
  "id": 2391876,
  "title": "Sugar Price Surge: Govt Rejects Ethanol Diversion Claims, Blames Low Output, Hoarding & Festive Demand",
  "url": "https://urgent.news/2026/08/21/sugar-price-surge-govt-rejects-ethanol-diversion-claims-blames-low",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-21T14:11:54.000Z",
  "source": {
    "name": "Free Press Journal",
    "slug": "free-press-journal",
    "url": "https://www.freepressjournal.in/india/sugar-price-surge-govt-rejects-ethanol-diversion-claims-blames-low-output-hoarding-festive-demand"
  },
  "original_language": "en",
  "account": "New Delhi: The government rejected allegations that diverting sugar for ethanol production was causing a steep rise in sugar prices, instead blaming lower domestic output, seasonal demand, and hoarding for the price hike. According to the Ministry of Consumer Affairs, Food & Public Distribution, only around 9 per cent of sugar is diverted for ethanol production in the 2025-26 season, down from 12 per cent in 2022-23, as most ethanol now comes from grains like maize. The government clarified these claims as retail sugar prices climbed to Rs 55.70 per kg from Rs 48.18 per kg between July 20 and August 20. Factors attributed to the price surge included lower-than-expected sugar production, strong festive demand, crop damage due to bad weather, and speculation and hoarding by some industry players. To curb the price rise and ensure adequate supply, the government imposed a stock limit of 400 tonnes on sugar dealers nationwide until November 30, and restricted bulk consumers from holding stocks for more than 15 days of consumption from September 1. Additionally, duty-free imports of 1 million tonnes of raw sugar have been approved, and physical verification of stocks at mills will be conducted by joint central and state government teams to prevent hoarding and artificial scarcity. Domestic sugar production for the current season is expected to be around 30.6 million tonnes, down from the initial estimate of 34.3 million tonnes, due to diseases like Red Rot and Top Borer affecting sugarcane, and waterlogging caused by excessive rainfall. The government noted that existing stocks are sufficient to meet domestic demand until the new crushing season begins in October.",
  "summary": "New Delhi: The government on Friday rejected claims that diversion of sugar for ethanol production was driving a sharp rise in sugar prices, saying instead that lower domestic output, festive-season demand and hoarding had prompted the government to impose stock limits and allow duty-free imports to contain prices. \"It is incorrect to attribute the recent increase in sugar prices to diversion of…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Economic Times",
        "title": "Sugar’s price spike, govt says ethanol not at fault",
        "url": "https://urgent.news/2026/08/21/sugars-price-spike-govt-says-ethanol-not-at-fault",
        "published": "2026-08-21T12:22:59.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}