Congress president Mallikarjun Kharge on Saturday criticised the Centre over rising sugar prices and declining domestic stocks, questioning the government's ethanol blending policy and its claim of promoting an "Atmanirbhar Bharat". Kharge alleged that the combination of lower sugar production, falling stocks and increased imports had placed an additional burden on consumers ahead of the festive season. In a post on X, Kharge raised three questions for the Narendra Modi-led government over the current situation in the sugar sector. He questioned why India's sugar stocks had fallen to their lowest level in nine years despite the country being one of the world's largest sugar producers and exporters.
He also asked how the government reached a situation where sugar exports had to be halted and one million tonnes of sugar imported duty-free. Kharge further criticised the increase in retail sugar prices, claiming that sugar had become nearly 40 per cent more expensive over a three-month period. He questioned who should be held responsible for the increase and said the higher prices were adding to the financial burden on consumers just before the festivals. The Congress leader also linked the issue to the government's ethanol blending programme, particularly the diversion of sugarcane and grain for ethanol production.
Questioning the Centre's approach, Kharge said that sugar production had first declined, followed by a fall in stocks to their lowest level in nine years, while the country was now importing sugar. At the same time, he argued, sugarcane was being diverted for ethanol production to support the E20 petrol blending target. Kharge asked why the policy was not being reviewed in light of the reported shortage and questioned what kind of "self-reliant India" such a situation represented. The criticism came after the Ministry of Consumer Affairs, Food and Public Distribution addressed the recent increase in retail sugar prices.
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On Friday, the ministry said the average retail price had risen from Rs 48.18 per kg on July 20 to Rs 55.70 per kg on August 20. The ministry attributed the increase to a combination of factors and rejected the suggestion that diversion of sugar toward ethanol production was responsible for the price rise. The Centre has also cautioned sugar mills against profiteering amid the increase in retail prices. The government's response directly counters the political argument advanced by Kharge that ethanol diversion is contributing to the current pressure on sugar availability and prices.
The ministry's position is that the recent movement in retail prices should be understood in the context of multiple factors rather than being attributed primarily to the ethanol blending programme. The dispute highlights a broader political debate over India's sugar policy, domestic availability and the government's push for ethanol blending in petrol. The ethanol programme has been promoted as part of efforts to reduce dependence on imported fossil fuels and support alternative fuel sources. Congress, however, has questioned whether the diversion of agricultural commodities toward ethanol production should be reassessed when domestic sugar supplies and prices are under pressure.
Kharge's comments are likely to intensify the political debate over sugar prices as the festive season approaches, when household demand traditionally increases. While the Congress has linked the price rise to government policy and ethanol diversion, the Centre has rejected that connection and attributed the increase to several factors. The contrasting positions leave the issue at the centre of a wider argument over food prices, agricultural priorities, ethanol policy and the government's self-reliance agenda.
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