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Tezzbuzz Desk- The sudden increase in sugar prices in India has increased the concern of the common people. Along with this, questions are also being raised regarding the policy of ethanol blending i.e. E20 in petrol. The question is whether the use of sugarcane and sugar to make ethanol reduced the availability of sugar in the domestic market and increased prices? The central government has rejected this allegation and said that it is not right to hold ethanol production responsible for the inflation of sugar.

On August 20, the average retail price of sugar in the country increased to around Rs 55.70 per kg It's done. In comparison, the same price on July 20 was around Rs 48.18 per kg Was. That means within a month the price of sugar will increase by approximately Rs 7.52 per kgi.e. approximately 15.6 percent There was an increase of.

According to the Ministry of Consumer Affairs, Food and Public Distribution, the target for ethanol production in the 2022-23 season is around 12 percent sugar diverted Was done. Whereas in the 2025-26 season this share will reduce to approximately 9 percent It is left.

The government says that if ethanol production was a major reason for sugar shortage and inflation, then sugar diversion should have increased. On the contrary, it has decreased. Also, about three-fourths of the total ethanol produced in the country now comes from grains, especially Maizeis being prepared from.

Big decline in sugar production

According to the government, the main reason for the increase in the price of sugar is the greater than expected decrease in domestic production. Close to sugarcane producing states in the first 2025-26 season 3.43 crore tonnes Sugar production was estimated. Now this estimate has come down to approximately 3.06 crore tonnes It is left.

That means the production is closer to the initial estimate. 37 lakh tonnes There is a possibility of shortage.

Disease and rain spoiled sugarcane production

The sugarcane crop has been affected by many diseases and weather conditions. according to the government Red rot and top borer Sugarcane production was affected due to diseases like. Apart from this, heavy rains and waterlogging in many areas also damaged the crops.

Demand increased before festivals

With the festive season approaching, the demand for sugar is also increasing. In such a situation, pressure on prices has increased in the market amid low production and increasing demand.

The government fears that some traders may try to increase prices by holding sugar stocks. For this reason, the government has increased monitoring of the stock available in the market.

Government's strictness on sugar stock

Center for sugar dealers Stock limit of 400 tonnes Has been determined. This arrangement will remain in force till 30 November 2026. And from September 1, big consumers will not be allowed to keep sugar more than their 15 day requirement.

Joint teams of the government and states will also check the stock available in sugar mills to find out whether the prices are being increased by deliberately stopping the supply of sugar.

Import of 10 lakh tonnes of raw sugar

To increase supply in the domestic market, the government Duty-free import of 10 lakh tonnes of raw sugar Has been approved. The government's aim is to increase the availability of sugar in the market and reduce the pressure on prices.

The government says existing stocks are enough to meet domestic demand till the new crushing season starting in October. states and sugar mills Crushing to start from 15th October Has been advised.

Government expects sugar production to increase in October more than 10 lakh tonnes Could stay.

What is the real question?

The government has clarified that the current inflation of sugar is not directly to E20 or ethanol blending. But decline in production, festive demand, decreasing buffer stock and possible hoarding have definitely increased the pressure on sugar prices.

In such a situation, the biggest challenge before the government in the coming festive season To maintain adequate supply of sugar and control prices Will be done.