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Sugar prices spark political row: Kharge questions Centre, govt rejects ethanol link

By Anu News
August 22, 2026 2 Min Read
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NEW DELHI: Congress president Mallikarjun Kharge has stepped up his attack on the Modi government over rising sugar prices and declining stocks, questioning the Centre’s policies ahead of the festive season.

In a post on Social media X, Kharge said the “bitterness” of the government’s policies had entered the “sweetness” of sugar and posed three questions to the Centre.

He questioned why sugar stocks in India, one of the world’s largest sugar producers and exporters, had fallen to their lowest level in nine years. He also sought an explanation for the decision to halt exports and allow duty-free imports of 1 million tonnes of sugar.

Kharge claimed sugar prices had risen by nearly 40% in three months, asking who would be held responsible for the additional burden on consumers ahead of the festivals.

त्योहारों से पहले चीनी की मिठास में मोदी सरकार की नीतियों की कड़वाहट घुल गई है।

मोदी सरकार से 3 सीधे सवाल:

1. दुनिया के बड़े चीनी उत्पादक और निर्यातक भारत में आज चीनी का स्टॉक 9 साल के निचले स्तर पर क्यों है? नौबत निर्यात रोकने और 10 लाख टन चीनी duty-free आयात करने तक कैसे… pic.twitter.com/hO9wLYgVWN

— Mallikarjun Kharge (@kharge) August 22, 2026

He also targeted the Centre’s E20 ethanol blending policy, questioning why the diversion of sugarcane and grains for ethanol production was not being reviewed when the country was facing concerns over sugar availability.

Kharge questioned the government’s ‘Atmanirbhar Bharat’ (self-reliant India) slogan, pointing to the combination of declining production, falling stocks and sugar imports.

He said that while India was importing sugar from abroad, sugarcane was simultaneously being diverted for ethanol production to blend with petrol.

The government, however, has rejected the claim that ethanol production is responsible for the rise in sugar prices. The Ministry of Consumer Affairs said retail sugar prices increased from ₹48.18 per kg on July 20 to ₹55.70 per kg on August 20.

It attributed the increase to lower-than-expected production, festive demand, weather-related crop damage, tighter global supplies, speculation and hoarding. The ministry also said the share of sugarcane used for ethanol had declined from 12% in 2022-23 to about 9% in 2025-26.

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