New Delhi, Aug. 28 -- Sugar prices in India have risen sharply in recent weeks, raising concerns about production, domestic availability and the diversion of sugar towards ethanol as part of India's E20 fuel program that mandates petrol blended with 20% ethanol, aiming to reduce crude oil imports among other things.

Critics have slammed Prime Minister Narendra Modi's government's blending policy for the sugar crisis and also for the reduced fuel efficiency of automobiles. The government, however, says the current price increase should not be attributed mainly to ethanol production.

According to the Ministry of Consumer Affairs, the average retail price of sugar increased from Rs.48.18 per kg on July 20, 2026, to Rs.55.70 per kg on Augus...