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Politics

Congress Targets Centre Over Sugar Shortage, Price Rise and Ethanol Policy

Congress chief raises concerns over nine-year-low sugar stocks, rising prices and diversion of sugarcane and grains for ethanol production.
Sobhana Dash
Sobhana Dash
22 Aug 2026, 07:30 AM 4 min read 85
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Congress Targets Centre Over Sugar Shortage, Price Rise and Ethanol Policy
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Kharge Targets Centre Over Sugar Shortage, Price Rise and Ethanol Policy

New Delhi, Aug 22 (UNI): Congress president and Leader of Opposition in the Rajya Sabha Mallikarjun Kharge on Saturday stepped up his attack on the Narendra Modi government over declining sugar availability and rising prices ahead of the festive season, questioning the Centre's sugar management and ethanol-blending policies.

In a statement, Kharge said the “sweetness of sugar” had been overshadowed by the “bitterness” of the Modi government's policies and raised three questions concerning the country's sugar stocks, rising prices and the diversion of sugarcane and grains for ethanol production.

Kharge questioned how India, one of the world's major sugar producers and exporters, had reached a situation where sugar stocks were at a nine-year low, with the government having to restrict exports and permit duty-free imports of 10 lakh tonnes.

“Why are sugar stocks in India at a nine-year low today, despite India being one of the world's major sugar producers and exporters? How did the situation reach the point where exports had to be stopped and 10 lakh tonnes of sugar had to be imported duty-free?” he asked.

The Congress chief also targeted the government over what he described as a steep increase in sugar prices, claiming that the commodity had become nearly 40 per cent more expensive in just three months.

“Sugar has become nearly 40 per cent more expensive in three months — who is responsible for this inflationary burden on the people ahead of the festivals?” Kharge asked.

He said the rise could put additional pressure on consumers at a time when demand for sugar traditionally increases during the festive season.

Kharge also questioned the continuation of the Centre's ethanol policy amid concerns over domestic sugar availability.

The government has promoted ethanol blending with petrol as part of its strategy to reduce crude oil imports, strengthen energy security and provide an additional market for agricultural produce. The E20 programme envisages blending petrol with up to 20 per cent ethanol.

“When there is a shortage of sugar in the country and the government is importing sugar from abroad, why is the policy of diverting sugarcane and grains towards ethanol for E20 not being reviewed?” Kharge asked.

Linking the issue to the government's emphasis on self-reliance, the Congress president questioned the situation under the broader objective of “Atmanirbhar Bharat”.

“What kind of ‘Atmanirbhar Bharat’ is this?” he asked.

Kharge argued that the developments reflected a contradiction in government policy, with sugar production declining and stocks falling to a nine-year low while the country was importing sugar and sugarcane was simultaneously being diverted towards ethanol production.

The Congress has consistently opposed aspects of the Centre's ethanol-blending policy, arguing that diverting sugarcane and food grains for fuel could affect food availability and prices.

The government, however, has maintained that ethanol blending helps reduce India's dependence on imported crude oil, provides an additional revenue stream to farmers and advances the country's energy-security objectives.

Kharge's latest remarks are expected to intensify the political debate over sugar prices, food security and the Centre's ethanol policy ahead of the festive season, when household and commercial demand for sugar typically increases.

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Sobhana Dash
About the Author: Sobhana Dash
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Chief Editor — Senior editorial correspondent reporting on state politics, economy, and public infrastructure.

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