Congress alleges ₹36,000-crore ‘sugar scam’ over festive price rise
The Congress party has accused the Indian government of orchestrating a ₹36,000-crore sugar scam by failing to manage supply shortages ahead of the festive season. They allege that the government's policy of diverting sugarcane for ethanol production, combined with inaction on hoarding, has led to a sharp spike in retail sugar prices.
Why it matters
This highlights the political tension surrounding food inflation and government resource management, which directly impacts the cost of living for millions of citizens during major festivals.
The Congress on Thursday (August 27, 2026) accused the Modi government of facilitating a ₹36,000-crore “sugar scam”, alleging that its failure to act on a shortage allowed hoarders and black-marketeers to profit from a sharp rise in sugar prices ahead of the festive season.
Addressing a press conference, Congress general secretary Randeep Surjewala said the government knew in April that there would be a shortage but “sat quietly” and did not act.
Explaining the issue, he said that the opening stock of sugar for 2025-26 was 50 lakh tonnes, which was 30 lakh tonnes lower than the previous year. And on April 30 this year, the Indian Sugar & Bio-energy Manufacturers’ Association had stated that sugar production was 275 lakh tonnes.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in