Not ethanol, but low output, festive demand behind sugar price hike: Centre
The Indian government attributes rising sugar prices to lower domestic production and high festive demand rather than ethanol diversion. To stabilize the market, officials are curbing hoarding and permitting sugar imports for the first time in a decade.
Why it matters
Sugar is a staple commodity in India; price volatility directly impacts inflation and food security for millions of households.
The government on Friday said the recent surge in sugar prices cannot be attributed to the diversion of sugar for ethanol, pointing instead to lower-than-expected domestic production, higher festive-season demand, and weather-related crop damage.Average retail sugar prices rose from ₹48.18 per kg on July 20 to ₹58.20 per kg on August 21, according to data from the consumer affairs ministry’s price portal.
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