The federal government on Friday stated the current surge in sugar costs can’t be attributed to the diversion of sugar for ethanol, pointing as an alternative to lower-than-expected home manufacturing, increased festive-season demand, and weather-related crop harm.
Common retail sugar costs rose from ₹48.18 per kg on July 20 to ₹58.20 per kg on August 21, in line with knowledge from the patron affairs ministry’s value portal. The worth surge has prompted the federal government to step up measures to curb hoarding and permit sugar imports for the primary time in almost a decade to enhance home availability forward of the festive season.
Authorities blames fall in home manufacturing
In response to an official launch, the share of sugar diverted for ethanol has declined from round 12% of manufacturing in 2022-23 to about 9% in 2025-26 as output dropped. Almost three-fourths of ethanol produced in India now comes from grains, notably maize, the federal government acknowledged.
Home sugar manufacturing within the present season is anticipated to succeed in round 30.6million tonnes, effectively under the preliminary estimate of 34.35 million tonnes. Output fell as crops have been hit by pink rot and high borer ailments in sugarcane, alongside waterlogging from extra rainfall.
