The Congress on Thursday accused the Narendra Modi government of facilitating an alleged ₹36,000-crore sugar scam by failing to address a potential shortage and allowing hoarders and black-marketeers to benefit from rising prices ahead of the festive season. Congress general secretary Randeep Surjewala alleged that the Centre was aware of the possibility of a shortage in April but did not take timely measures to prevent prices from rising. Addressing a press conference, Surjewala claimed that retail sugar prices had increased from around ₹40 per kg to nearly ₹75 per kg. He warned that consumers could face an additional financial burden during Dussehra and Diwali if prices remain elevated. The Congress leader argued that the price increase could translate into substantial gains for traders allegedly holding stocks for higher prices.

Surjewala estimated that India could consume around 12 million tonnes of sugar between August and November. Based on an alleged additional cost of ₹30 per kg for consumers, he calculated that the overall burden could reach approximately ₹36,000 crore. He claimed that this amount would effectively benefit hoarders and black-marketeers, and accused those in power of enabling profiteering. “When people celebrate Dussehra and Diwali, they will face the brunt of the price rise of sugar this year and shell out more from their pockets,” Surjewala said. He attributed the increase in prices to lower sugar production and alleged diversion of available stocks, describing the situation as a policy failure that was benefiting profiteers.

The Congress leader also criticised remarks attributed to BJP leaders suggesting that higher sugar prices could help discourage diabetes. Taking a swipe at the ruling party, Surjewala said such arguments were being offered to justify the increase in the price of an everyday household commodity. He compared the alleged impact of expensive sugar with rising fuel-related costs, arguing that consumers were ultimately bearing the financial consequences. Surjewala further alleged that farmers were producing less sugarcane because they were not receiving remunerative prices. He claimed that the reduction in production was contributing to tighter sugar availability and rising prices. The Congress leader used the issue to challenge the government's claims about agricultural development and the economic conditions facing farmers.

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Another allegation raised by Surjewala concerned the use of sugarcane stocks for ethanol production. He claimed that 32% of sugarcane stocks were diverted towards producing E20 fuel between November 2025 and July 2026. According to him, the diversion reduced the amount of sugar available for domestic consumption and contributed to pressure on supplies. “The Modi government gets the praise for E20 fuel and people bear the consequences,” Surjewala said. He argued that the government’s policy priorities had created an adverse impact for consumers by reducing the availability of sugar for the domestic market while promoting ethanol blending in petrol.

The Congress also demanded the restoration of an earlier subsidised sugar distribution arrangement under which 500 grams of sugar was provided to every family member through the Public Distribution System. Surjewala said such a measure would provide relief to households facing higher food costs and help protect consumers from further price increases. The allegations come ahead of the major festive period, when household consumption typically rises. Surjewala warned that elevated sugar prices could increase the cost burden on families preparing for Dussehra and Diwali celebrations. He said the government needed to intervene to address supply concerns and prevent consumers from bearing what he described as an avoidable increase.

The ₹36,000-crore figure cited by the Congress is based on Surjewala’s calculation of the additional amount consumers could pay if the alleged ₹30-per-kg increase applies to the estimated sugar consumption between August and November. The allegation and the calculation have been made by the opposition party and do not by themselves establish the existence of a scam or government involvement in profiteering. The Congress has nevertheless sought to turn the issue into a broader political challenge for the Centre, linking sugar prices, agricultural policy, ethanol production and household inflation. With Dussehra and Diwali approaching, the party has demanded government intervention, while accusing the Modi government of failing to protect consumers from rising sugar prices.

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