Sugar prices have climbed sharply in India, prompting the Centre to cite lower production linked to red rot disease and El Nino conditions. Opposition leaders, meanwhile, have raised questions over farmer payments, sugarcane diversion for ethanol and the government’s supply policy.
NEW DELHI, India — Retail sugar prices rose from Rs 48.18 per kg on July 20 to Rs 55.70 per kg on August 20, according to the Ministry of Consumer Affairs, Food and Public Distribution, triggering a political dispute over the reasons behind the increase and the government’s response.
Key Highlights
- The Centre linked lower sugar production to red rot disease and El Nino conditions affecting agricultural output.
- India’s annual sugar requirement was put at around 280 lakh tonnes, with the government saying a surplus of more than 20-25 lakh tonnes remains available.
- The Centre has initiated temporary raw sugar imports ahead of the festival season to address supply concerns.
- Opposition leaders have questioned farmer payments and the diversion of sugarcane towards ethanol production.
- Authorities in Varanasi said sufficient sugar stocks are available in the district and across Uttar Pradesh.
Why sugar prices are rising
Union Minister Pralhad Joshi attributed the decline in sugar production to red rot disease and El Nino conditions. He said the impact had been felt across agricultural production in India and globally, prompting the government to take measures to protect domestic availability.
The Centre has also moved ahead with temporary imports of raw sugar as the festival season approaches. Joshi said India’s requirement is around 280 lakh tonnes and maintained that the country still has a surplus of more than 20-25 lakh tonnes.
Centre takes supply-side measures
The government’s response includes steps aimed at maintaining sugar availability and limiting pressure on consumers. Temporary raw sugar imports are being used as a supply measure as demand is expected to remain important during the major festival period.
The Ministry of Consumer Affairs, Food and Public Distribution said it is closely monitoring market developments and has initiated regulatory and supply-side measures to maintain availability and price stability.
Opposition questions farmer payments and imports
The rise in sugar prices has also become a political issue. Congress General Secretary and MP Randeep Singh Surjewala questioned the government’s sugar policy and alleged that delays in payments to sugarcane farmers could discourage cultivation.
Surjewala also questioned why India needed sugar imports, arguing that the country had previously exported sugar. His criticism focused on the relationship between farmer payments, cultivation decisions and domestic sugar availability.
Congress MP Manish Tewari separately criticised rising prices of essential commodities and raised concerns about sugarcane being diverted for ethanol production. He argued that reduced availability of sugarcane for sugar manufacturing could place additional pressure on supplies.
Government rejects ethanol diversion claim
The Ministry has disputed the argument that ethanol diversion is responsible for the recent increase in sugar prices. According to the ministry, the proportion of sugar diverted for ethanol declined from around 12 per cent in 2022-23 to around 9 per cent in 2025-26.
The ministry also said nearly three-fourths of India’s ethanol production now comes from grains, particularly maize. The figures were cited as evidence against attributing the latest sugar price increase primarily to ethanol diversion.
Varanasi administration says stocks are sufficient
Local authorities in Varanasi said there is no shortage of sugar in the district or across Uttar Pradesh. The administration has asked consumers to purchase sugar according to their requirements from the open market.
Food and Logistics Department officials and employees are monitoring sugar availability and market prices. Wholesale and retail traders have also been directed to regularly report their available stocks through the portal of the Ministry of Food and Public Distribution.
Sugar price rise puts policy under focus
The movement in retail prices has therefore brought several issues into the debate, including production levels, supply management, farmer payments and ethanol policy. While the Centre has focused on production losses and supply-side measures, opposition leaders have questioned whether existing policy decisions have contributed to pressure in the sugar market.
With the government monitoring availability and using temporary imports, the immediate policy focus is on maintaining supplies and price stability as the festival season approaches.
Praveen Yadav is the Founder and Content Creator of The Nation Bulletin, an independent digital news platform focused on delivering timely, reliable and meaningful news from India and around the world.
