New Delhi, Aug. 20 -- AAP National Convenor Arvind Kejriwal on Thursday alleged that the Centre's policy of diverting sugarcane towards ethanol production had contributed to a sharp rise in sugar prices, claiming that the price of sugar had increased by around Rs 20 per kg in the past 17 days.

In a video message, Kejriwal said the government had promoted ethanol blending with petrol with the objective of reducing crude oil imports and saving foreign exchange. However, he argued that diverting sugarcane for ethanol had reduced the availability of sugar and pushed up domestic prices.

"Sugar that was Rs 46 per kilogram 17 days ago is now Rs 65 per kilogram," Kejriwal claimed, attributing the increase to a shortage of sugarcane and sugar.

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