The Union government has rejected claims that diverting sugarcane for ethanol production is responsible for the recent rise in sugar prices, saying the increase is linked to lower production caused by Red Rot disease and El Niño conditions.

Retail sugar prices have reached ₹65 per kilogram or more in some parts of India. The increase has become a political issue as the festival season approaches, with opposition parties arguing that reduced sugar availability is pushing up costs.

Union minister Prahlad Joshi said there was no shortage of sugar in the country. He said the government was taking measures to address concerns over availability and retail prices, including the temporary import of raw sugar.

Government rejects ethanol explanation

Opposition criticism has focused on the use of sugarcane for ethanol production. The argument is that this reduces the quantity available for making sugar and places additional pressure on supplies.

The Narendra Modi government has rejected that explanation. According to Joshi, ethanol is not responsible for the increase in sugar prices.

The minister said the government was closely monitoring the situation and had directed state governments to help bring available stocks into the market. The stated aim is to improve availability for consumers and help prices return to earlier levels.

Red Rot and El Niño cited as causes

Joshi identified two factors behind the production decline: Red Rot disease, which he said was unexpected, and El Niño conditions. He said these factors had affected agricultural production not only in India but around the world, including sugar production.

“Red Rot disease, which was not expected, and El Niño have reduced total agricultural production, including sugar, not only in India but across the world,” Joshi said.

The government’s explanation comes as concern grows over the effect of weather conditions on sugarcane production in major producing countries. El Niño-related conditions are being viewed as an important factor affecting output and adding pressure to sugar supplies in India and internationally.

Steps planned before the festivals

Joshi said the government was concerned about the increase in sugar prices and had already taken several immediate steps. With several major festivals approaching, authorities are also pursuing import-related measures, including the temporary import of raw sugar.

He said India’s requirement was about 280 lakh tonnes and that the country had about 36 lakh tonnes of sugar in stock. The government has maintained that adequate surplus sugar is available while also announcing steps to release stocks and support supply during the festival period.

The wider concern is that weaker production in India and other countries could keep pressure on supply, prices and exports. Reports cited in the discussion around the issue have raised the possibility that adverse weather could contribute to a broader global sugar shortage.

For now, the government’s position is that India does not face a sugar shortage and that measures are being taken to contain the price rise. The availability of stock, state-level market releases and temporary raw sugar imports are the main actions identified by the minister.