BHOPAL, (Economy india): The Communist Party of India (Marxist) has criticised the BJP-led central government over the recent rise in sugar prices, alleging that the diversion of sugarcane towards ethanol production has reduced sugar availability and increased the burden on consumers.
The CPI(M) said the price rise could make the upcoming Raksha Bandhan festival, to be celebrated on August 28, “less sweet” for families. The party has demanded that the government take immediate steps to bring sugar prices under control.
Madhya Pradesh CPI(M) secretary Jaswinder Singh alleged that the government was prioritising the interests of ethanol producers and corporate houses over consumers. He claimed that around 25 lakh tonnes of sugarcane had been diverted for ethanol production, contributing to tighter sugar supplies and higher prices.
Sugar prices have risen sharply in recent weeks. According to the government, the average price increased from ₹48.18 per kg on July 20 to ₹55.70 per kg on August 20.
However, the Centre has rejected the allegation that ethanol diversion is responsible for the price increase. The government said the share of sugar diverted for ethanol had actually declined from around 12 per cent in 2022-23 to about 9 per cent in 2025-26. It attributed the price rise to lower-than-expected sugar production, festive demand, weather-related crop damage, global supply concerns, and speculation or hoarding.
The government has announced several measures to increase availability, including allowing duty-free imports of 10 lakh tonnes of raw sugar and imposing stock limits on traders.
With Raksha Bandhan approaching, the dispute over the reasons behind the sugar price surge has added to concerns among consumers and sweet manufacturers ahead of the festive season.
(Economy india)
