Congress accuses govt of Rs 36,000-crore sugar scam to benefit hoarders

Amid a sharp rise in sugar prices ahead of the festive season, the Congress on Thursday accused the Modi government of facilitating what it termed a Rs 36,000-crore sugar scam by allowing hoarders and black-marketeers to profit at the expense of consumers.

Addressing a press conference in Delhi, Congress general-secretary Randeep Surjewala alleged that the government knew of a possible sugar shortage in April but failed to act, resulting in prices rising from around Rs 40 to Rs 75 per kg.

Surjewala said the country was expected to consume around 12 million tonnes of sugar between August and November. If consumers were made to pay an additional Rs 30 per kg, he said, the resulting burden would be around Rs 36,000 crore.

"When people celebrate Dussehra and Diwali, they will face the brunt of the price rise of sugar this year and shell out more from their pockets. The 12 million tonnes of sugar will amount to Rs 36,000 crore, which will directly benefit hoarders and black-marketeers. What could be a bigger example of collusion with those in power?" he alleged.

Surjewala attributed the price rise to lower sugar production and what he described as the diversion and 'swindling' of stocks, calling it the Modi government's "new masterstroke" to allow profiteers and black-marketeers to "rob the public".

The Congress leader also blamed the government's ethanol policy, claiming that 32 per cent of sugarcane stocks were diverted towards the production of E20 fuel between November 2025 and July 2026. This, he alleged, reduced the quantity of sugar available for domestic consumption.

"The Modi government gets the praise for E20 fuel and people bear the consequences," he said.

The Congress has linked the price rise to the government's push for E20 petrol, which contains up to 20 per cent ethanol. Sugar mills can divert sugarcane-derived products towards ethanol production, potentially affecting the balance between ethanol and sugar output depending on prevailing policy incentives and production levels.

Surjewala also claimed that farmers were producing less sugarcane because of inadequate returns, saying the government's claims of 'agricultural development' had failed to translate into better conditions for farmers.

He hit out at BJP leaders for linking higher sugar prices to efforts to curb diabetes. "BJP leaders are giving advice to the public by claiming that Prime Minister Narendra Modi has made sugar expensive to drive away diabetes and added it to petrol. The result is that cars are stuck in garages and people's pockets are emptying," he said.

The Congress also demanded that the government restore the scheme under which 500 grams of sugar was provided to every member of a family at subsidised rates through the public distribution system (PDS), a measure introduced under the previous Congress-led government.

The demand comes as the Opposition party seeks to turn the rise in sugar prices into a wider criticism of the government's handling of food prices, ethanol policy and agricultural returns.

Surjewala warned that the price rise would impose an additional burden on households during Dussehra and Diwali, when demand for sugar traditionally increases.