Retail sugar prices have risen substantially over the past month, prompting the Centre to announce measures including temporary imports of raw sugar while facing opposition questions over policy and the impact on farmers.
Government Measures and Causes
Union Minister Pralhad Joshi said the government was taking several measures to boost supply, citing a decline in production driven by red rot disease and El Nino conditions that have hit agricultural output in India and globally. He said at a press interaction: "Because of the red rot disease, which was very unexpected, and El Nino, overall agricultural production, including sugar, has come down not only in India but globally...we are very concerned about it, which is why we have immediately taken several measures. India's requirement is around 280 lakh tonnes, and as of today...we have a surplus of more than 20 to 25 lakh tonnes."
Joshi also confirmed that India's annual sugar requirement is around 280 lakh tonnes, and the country currently has a surplus of more than 20-25 lakh tonnes. "Import measures are being taken as the festival season is approaching, and there are many major festivals...we have already taken many measures, including raw sugar imports as a temporary measure," he further said.
The assurance comes amid a recent rise in retail sugar prices. The Ministry of Consumer Affairs, Food and Public Distribution said retail sugar prices increased from Rs 48.18 per kg on July 20 to Rs 55.70 per kg on August 20, a rise of roughly 15 per cent. The ministry attributed the increase to a combination of factors.
Political Criticism and Farmer Payments
The issue has quickly become a political point, with Congress General Secretary and MP Randeep Singh Survela alleging that farmers are not being paid promptly for the sugarcane they supply. He also alleged that India, which previously exported sugar, is now importing it for the first time. "There is a Sugar Control Order in the country, and we determine sugar prices... Do you pay farmers for the sugarcane they sell for up to a year? Do you? They would not cultivate it. Do you see? It is the first time sugar is being imported." he said.
Further Opposition and Varanasi Authorities
Congress MP Manish Tewari also criticised the government over rising prices of essential commodities, including sugar, potatoes, onions, and garlic. He raised concern over the use of sugarcane for ethanol production, saying "It is extremely unfortunate that sugar prices are skyrocketing. The prices of daily essentials from potatoes to onions to garlic are also soaring. Meanwhile, the sugarcane that is meant for making sugar is now being diverted to ethanol. If the raw material is used as fuel, what will happen? There must be a thorough investigation."
Shiv Sena (UBT) MP Sanjay Raut criticised the diversion of sugarcane towards ethanol production and urged the government to engage with families facing increased house hold expenses. He said, "In these 12 years, what has become cheaper? In these 12 years of idol, death has become cheap. Accidents have become cheap. Suicides have become cheap. Nothing else has become cheap. Regarding sugarcane used for making sugar, the entire supply is being diverted to ethanol."
In Varanasi, authorities said enough sugar stocks are available in the district and across Uttar Pradesh, with Additional District Magistrate (Civil Supply) Amit Kumar Bhartiya saying officials and staff of the Food and Logistics Department are regularly monitoring sugar availability and regulating prices.
Ministry on Ethanol and Government Measures
Responding to the opposition's ethanol camp, the Ministry of Consumer Affairs said it is incorrect to attribute the rising price to ethanol diversion. The ministry said the share of sugar diva for ethanol declined from around 12 per cent in 2022-23 to about 9 per cent in 2025-26, and nearly three-fourths of the country's ethanol output now comes from grains, particularly maize. The government statement says it has initiated a series of regulatory and supply-side measures to maintain availability and price stability.
Perspectives on Supply and Forecasts
While the government sees immediate supply facts, the Deccan Chronicle has taken a more critical view, stating that the government must take the main blame for the present situation. The publication says the government had to make a dramatic turnaround, from allowing exports based on good production expectations to permitting one million tonnes of duty-free imports before October 31. It judges the government's control over market releases, stockholding and exports, and suggests that it may have been misled by overly optimistic forecasts from industry. A July 2025 outlook from a sugar manufacturing association assessed that production had fallen by more than six million tonnes after 2.4 million tonnes were diverted to ethanol; the association itself not named. The paper also anticipates that the sugar crisis could stretch into next year, saying the opening stock for the coming season is likely to be less than that of October 2025, and notes that the festive season begins with Onam and runs into the New Year.
Perspectives
Government (Pralhad Joshi, Ministry of Consumers Affairs): The price rise follows lower production caused by red rot disease and El Nino, and the state is responding with imports and other measures.
**Opposition (Randeep Singh Surjewala, Manish Tewari, Sanjay): Farmers are not paid and policy from exports to imports while diversion to ethanol and handling of household expenses are key concerns.
Deccan Chronicle editorial: The government's role in managing supplies and its corrective while the current situation reflects a weak handling of the sector.