Congress alleged that 32% of sugarcane stocks were diverted to E20 fuel production between November 2025 and July 2026, which it claimed reduced sugar availability for consumers.
New Delhi: The Congress on Thursday accused the Narendra Modi government of allowing a ₹36,000-crore sugar crisis to develop, alleging that rising prices during the festive season are benefiting hoarders and black-marketeers at the expense of consumers.
Addressing a press conference in New Delhi, Congress general secretary Randeep Surjewala claimed that the government was aware of a possible sugar shortage in April but failed to take timely action. He alleged that retail sugar prices have since increased from around ₹40-45 per kg to ₹70-75 per kg.
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Congress claims ₹36,000-crore burden on consumers
Surjewala said around 12 million tonnes of sugar are expected to be consumed between August and November, covering the peak festive period. If consumers pay an additional ₹30 per kg, he claimed, the extra burden would amount to about ₹36,000 crore.
He described the situation as a “scam” and alleged that the additional money would benefit hoarders and black-marketeers.
The Congress leader also accused the government of failing to respond despite declining sugar production and lower opening stocks at the beginning of the 2025-26 season.
Lower production and stocks cited
Surjewala said opening sugar stocks for the 2025-26 season stood at 50 lakh tonnes, compared with 80 lakh tonnes the previous year.
Citing a statement issued by the Indian Sugar and Bio-energy Manufacturers Association on April 30, he said sugar production during the 2025-26 season was estimated at 275 lakh tonnes, significantly below the government's earlier projection of 343 lakh metric tonnes.
He alleged that the government should have acted after the lower production and stock figures became apparent.
Congress links sugar shortage to E20 fuel
Surjewala also alleged that the government's ethanol blending programme contributed to the reduction in sugar available for domestic consumption.
He claimed that 32 per cent of sugarcane stocks were used for producing E20 fuel between November 2025 and July 2026, reducing sugar supplies in the market.
“The Modi government gets the praise for E20 fuel and people bear the consequences,” he said.
Also read | Kharge questions Centre as sugar prices surge: Why are stocks at a 9-year low?
Demand for subsidised sugar through PDS
The Congress leader demanded that the government restore the earlier system of providing 500 grams of sugar per family member at subsidised rates through the Public Distribution System.
Surjewala said the move would provide relief to consumers facing higher prices during the festive season.
Also read | Sugar should be very expensive; people above 40 should avoid it: BJP leader Vijayvargiya sparks row
Imported sugar may arrive after festive season
Surjewala also raised concerns about relying on imports to ease the shortage. He said sugar imported from Brazil could take 45-55 days to reach India, followed by another 10-15 days for processing.
As a result, he claimed, imported sugar may reach Indian markets only by the end of November, after much of the festive-season demand has passed.
(With PTI inputs)
Published: 27 Aug 2026, 09:49 pm IST
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