The Centre on Friday rejected claims that the recent hike in sugar prices was driven by diversions of sugar for ethanol production, saying the increase instead was due to lower-than-expected domestic output, rising festive-season demand, crop damage and hoarding.
Factors Behind Rising Sugar Prices Clarified by Government
The Ministry of Consumer Affairs, Food and Public Distribution has clarified that the recent increase in sugar prices cannot be attributed to ethanol production. Instead, the government cites several contributing factors: a decline in domestic sugar production, heightened demand due to the upcoming festive season, and adverse weather conditions affecting sugarcane crops. Additionally, global supply constraints and hoarding by certain industry players have exacerbated the situation.
The shortfall in sugar production has been linked to specific agricultural challenges, including Red Rot and Top Borer diseases impacting sugarcane, as well as waterlogging resulting from excessive rainfall.
