No Ethanol Link to Sugar Price Spike; Millers Jacking up Rates, Says Govt
- Arvind Kejriwal of Aam Aadmi Party questioned the Central Government's ethanol policy, linking the rise in sugar prices from about Rs 46 per kg to nearly Rs 65 per kg to increased diversion of sugarcane for ethanol production, which reduced sugar availability.
- Kejriwal warned that reduced sugar output due to ethanol production could lead to sugar imports, impacting foreign exchange reserves.
23 Articles
23 Articles
No ethanol link to sugar price spike; millers jacking up rates, says govt
New Delhi, Aug 21: The government on Friday rejected claims that diversion of sugar for ethanol production was driving a sharp rise in the price of the sweetener and instead blamed the industry for jacking up prices despite the country having sufficient stock to meet domestic demand. The Centre has asked States to take action against hoarding and black marketing of the sweetener and also start preparing for early start of the crushing season by …
Why are sugar prices rising? Centre rejects ethanol link, cites five reasons behind surge
Sugar prices have risen to ₹55.70/kg from ₹48.18/kg in a month. The Centre rejects linking the surge to ethanol production, citing lower output, festive demand, crop damage, tighter global supplies, and speculation or hoarding as key reasons.
India is the second largest producer of sugar in the world, but the problem is that almost all of this sugar is consumed within India. A small amount is also being used to make ethanol.
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