Sugar prices surge 15.6 per cent in a month; political row over ethanol policy deepens
Sugar prices have risen sharply ahead of the festive season, triggering a political clash between the opposition and the government over falling stocks and the diversion of sugarcane for ethanol production.
Retail sugar prices rose 15.6 per cent in a month, from Rs 48 to nearly Rs 56 per kilogram. In Bhopal, the price touched Rs 70 per kg, up from Rs 65 a week ago, grocery shop owners said. Loose sugar in Chhatrapati Sambhajinagar, Maharashtra, was selling at Rs 75-80 per kg.
The CPI(M) blamed the Centre's ethanol policy for the price rise. Madhya Pradesh CPI(M) secretary Jaswinder Singh claimed that nearly 25 lakh tonnes of sugarcane had been diverted for ethanol production, contributing to the shortage. "The government is still not ready to explain the reason behind this sudden increase in sugar prices. This is bound to make the Raksha Bandhan festival less sweet," he said. Raksha Bandhan falls on August 28.
Experts, however, ruled out ethanol diversion as the main reason. Former Maharashtra Sugar Commissioner Shekhar Gaikwad said sugarcane production and yields were declining. Bhairavnath Thombre, president of the West Indian Sugar Mills Association, said ethanol produced through sugar diversion had fallen from 100 per cent in 2020 to around 30 per cent now. He said traders, anticipating the impact of El Nino, purchased and stocked large quantities of sugar, pushing up prices.
Haryana Congress chief Rao Narender Singh said sugar prices had risen by nearly 40 per cent to around Rs 67 per kg and jaggery prices by nearly 24 per cent to around Rs 65 per kg.
The central government attributes the reduced production to global factors, including red rot disease and water scarcity caused by El Nino. To stabilise prices, it has introduced stock caps, duty-free raw sugar imports, export bans and physical mill verification checks, according to India Today. The government has asked states to take action against hoarding and black marketing and prepare for an early start of the crushing season by mills around October 15.
The government has rejected claims that ethanol diversion is driving up prices and blamed the industry for jacking up prices despite sufficient stock.
(With inputs from PTI)