Politics intensifies over sugar price surge: Congress says, ‘Due to the ethanol policy, Rs 36,000 crore is being looted from the public’s pocket’ Politics intensifies over sugar price surge: Congress says, “The ethanol policy is robbing the public of Rs 36,000 crore.”

The huge rise in the market price of sugar just before the beginning of the festive season has suddenly intensified the political activity in the country. The main opposition Congress party has raised strong questions on the functioning of the Central Government, alleging that due to administrative laxity and wrong implementation of the ‘E-20 policy’ of blending ethanol in petrol, the prices of sugar are skyrocketing. The party claims that the country’s big hoarders and black marketeers are getting the full benefit of this entire situation, which is putting a huge financial burden on the pockets of common consumers.

Direct connection between E-20 policy and sugar shortage

During an important press conference held at the party headquarters in New Delhi, Congress General Secretary Randeep Surjewala cornered the government citing figures. He said that the ‘Indian Sugar Mill Association’ had made it clear on April 30 itself that the total sugar production in the country during the year 2025-26 is likely to come down to only 275 lakh metric tonnes, which was much less than the government’s claims of 343 lakh metric tonnes. This means that the government representatives had strong knowledge since the month of April that there could be a sugar crisis in the country in the coming days. Despite this, the responsible departments did not take any precautionary measures in time, as a result of which the sugar which was being sold in the market at Rs 40 to 45 per kg till a few months ago, has directly increased to the level of Rs 75 per kg in the month of August.

Additional burden of Rs 36,000 crore on public during festive season

Congress has claimed that the total consumption of sugar in the country is about 120 lakh metric tonnes between the festive months i.e. August and November. Accordingly, the general public has to pay an average of Rs 30 extra per kilogram in the market. Surjewala alleged that due to this huge price increase, the common citizens of the country will have to pay a total of Rs 36,000 crore extra from their hard-earned money to buy sugar, the direct benefit of which is going into the coffers of a few select profiteers. The party has termed it a big organized scam.

Questions raised on the condition of farmers and double whammy

The party also argued that due to non-receipt of fair remunerative price (FRP) of sugarcane and timely payment, the farmers of the country are gradually moving away from sugarcane cultivation. Despite this, the government diverted a large part of the available sugarcane stocks to the production of E-20 fuel during November 2025 to July 2026. Congress says that due to this short-sighted policy, on one hand, the market is facing huge shortage of sugar and inflation, while on the other hand, the drivers are also facing double blow due to the engine failure of the vehicles. To provide immediate relief to the public from this inflation, Congress has demanded that the old scheme of Public Distribution System (PDS), which was discontinued in the year 2017, should be restarted, under which sugar was provided to poor families at subsidized rates.