Sugar Prices Surge to ₹55.70/kg: Ethanol Not Behind Rise, Government Acts to Curb Hoarding and Boost Supply

The Voice of Chandigarh News

Sugar prices have risen sharply in recent weeks, climbing from ₹48.18 per kg on July 20 to ₹55.70 per kg on August 20. The Government has clarified that the price rise cannot be attributed to diversion of sugar for ethanol production, while announcing measures to improve availability and check hoarding.

Ethanol diversion has declined: The share of sugar diverted for ethanol production has fallen from around 12% in 2022-23 to about 9% in 2025-26. Nearly three-fourths of India’s ethanol production now comes from grains, particularly maize.

The Government attributed the current rise in sugar prices to a combination of lower-than-expected domestic production, festive-season demand, weather-related crop damage, tightening global supplies, speculation and hoarding.

The Government has also decided to permit duty-free import of 10 LMT of raw sugar, imposed a 400-tonne stock limit on sugar dealers, and ordered physical verification of sugar stocks to prevent artificial scarcity.

Ethanol Programme Continues to Support Sugarcane Farmers

The Government said the ethanol programme has helped reduce surplus sugar stocks, strengthen the financial health of sugar mills and improve timely payments to farmers. As of August 20, 97% of sugarcane dues for the 2025-26 season had already been paid.

States and sugar mills have also been advised to begin crushing from October 15, which is expected to boost October sugar production to more than 10 LMT, helping improve supplies during the festive season.