New Delhi, Aug. 22 -- The government on Friday said the recent surge in sugar prices cannot be attributed to the diversion of sugar for ethanol, pointing instead to lower-than-expected domestic production, higher festive-season demand, and weather-related crop damage. Average retail sugar prices rose from Rs.48.18 per kg on July 20 to Rs.58.20 per kg on August 20, according to the consumer affairs ministry. This has prompted the government to step up measures to curb hoarding and allow sugar imports for the first time in nearly a decade to augment domestic availability ahead of festive season. Nearly three-fourths of ethanol produced in India now comes from grains, particularly maize, the government stated.P8...