'Incorrect': Govt rejects ethanol link to sugar price spike, blames low output

NEW DELHI: The Centre on Friday said it was closely monitoring the recent rise in sugar prices and rejected claims that the increase was linked to the diversion of sugarcane for ethanol production.In a press release, the ministry of consumer affairs, food and public distribution said the share of sugarcane diverted for ethanol production has declined, while nearly three-fourths of the country's ethanol production now comes from maize."Sugar prices have increased in recent weeks, from Rs 48.18 per kg on 20 July 2026 to Rs 55.70 per kg on 20 August 2026. The government is closely monitoring the situation and has taken a series of measures to ensure adequate availability of sugar and stable prices for consumers," the ministry said."It is incorrect to attribute the recent increase in sugar prices to diversion of sugar for ethanol production.