Ethanol Not the Culprit, Government Says Amid Sugar Price Jump
What Happened
The government has dismissed claims that diverting sugar for ethanol production is behind the recent surge in sugar prices. It said retail sugar prices rose from ₹48.18/kg on July 20 to ₹55.70/kg on August 20 due to lower-than-expected domestic output, festive-season demand, weather-related crop damage, tighter global supplies, and hoarding
Key Takeaways
The Centre says ethanol is no longer a major factor in sugar availability, noting that sugar diversion for ethanol has fallen to about 9% from 12% a few years ago, while most ethanol now comes from grains, especially maize. To cool prices, it has imposed stock limits, approved 1 million tonnes of duty-free sugar imports, and stepped up anti-hoarding checks.