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Centre clarifies ethanol policy not behind sugar price rise

Sugar prices rose from ₹48.18 to ₹55.70 per kg between July 20 and August 20, but the Centre denies ethanol policy's role in this increase.

Puja Shil - - 2 min read
Centre clarifies ethanol policy not behind sugar price rise
AI Generated | MinuteBrief Team

In Brief

  1. Sugar prices rose from ₹48.18 to ₹55.70 per kg in one month.
  2. Centre says ethanol policy not responsible for sugar price increase.
  3. Price rise attributed to factors other than ethanol conversion.
  4. Government monitoring sugar market situation closely.

Sugar prices in India have surged sharply over the past month, rising from ₹48.18 per kilogram on July 20, 2026, to ₹55.70 per kilogram on August 20. Despite this increase, the central government has clarified that the recent rise in sugar prices cannot be attributed to the ethanol policy.

The Centre emphasized that the policy encouraging the diversion of sugarcane to ethanol production is not the cause of the current price uptrend. Officials stated that other factors in the market are influencing the sugar price dynamics.

The government continues to monitor the sugar market closely to ensure price stability and mitigate any adverse impacts on consumers. Authorities have not announced any immediate interventions but remain attentive to evolving trends in sugar production and distribution.

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