New Delhi, Aug 22: The Centre has stepped up efforts to keep sugar prices stable and ensure adequate supplies for consumers, while clarifying that the recent rise in prices should not be attributed to ethanol production.
The government said sugar prices increased from Rs 48.18 per kg on July 20 to Rs 55.70 per kg on August 20. It attributed the rise to lower-than-expected sugar production, weather-related crop damage, higher demand ahead of the festive season, tightening global supplies and concerns over hoarding and speculation.
Sugar production during the current season is expected to be around 306 lakh tonnes, compared with the initial estimate of about 343 lakh tonnes. Despite the lower production, the government said stocks remain sufficient to meet domestic demand until the next crushing season.
The Centre has taken several steps to improve availability and prevent excessive price increases. These include stockholding limits and measures to discourage hoarding, along with steps to increase supplies in the domestic market.
The government has also clarified that the quantity of sugar diverted for ethanol production has declined in recent years. The share fell from around 12 per cent in 2022-23 to about 9 per cent in 2025-26, while nearly three-fourths of ethanol production now comes from grains, particularly maize.
The Centre is closely monitoring sugar prices and availability and will take further measures if necessary. The focus remains on maintaining sufficient supplies, protecting consumers from sharp price movements and ensuring stability across the sugar sector.