A political row over rising sugar prices has intensified, with the Centre attributing the increase to lower production caused by red rot disease and El Nino conditions, while opposition leaders have questioned the government’s sugar policy, farmer payments and the diversion of sugarcane for ethanol production.
Retail Sugar Prices Surge in August
Retail sugar prices have risen significantly, increasing from Rs 48.18 per kg on July 20 to Rs 55.70 per kg by August 20. This change was reported by the Ministry of Consumer Affairs, Food and Public Distribution, highlighting a notable shift in market conditions.
The Ministry also rejected the claim that the recent rise in sugar prices was caused by the diversion of sugar for ethanol production. It said the share of sugar diverted for ethanol had declined from around 12 per cent in 2022-23 to around 9 per cent in 2025-26.
Union Minister Pralhad Joshi said the government was concerned about the decline in sugar production, attributing it to red rot disease and El Nino conditions that have affected agricultural output in India as well as globally. He said the government was taking several measures ahead of the festival season to address supply concerns, including temporary imports of raw sugar. Speaking to the media, Joshi said the unexpected spread of red rot disease, along with El Nino conditions, had contributed to a decline in agricultural production, including sugar, both in India and globally. Surjewala said the government determines sugar prices under the Sugar Control Order but questioned why farmers would continue cultivating sugarcane if they had to wait for payments for up to a year. Food and 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, according to the Ministry of Consumer Affairs.
