Purna Singh New Delhi

AamAadmi Party National Convenor Arvind Kejriwal has blamed the Modi government’s ethanol policy (E20) for a sharp rise in sugar prices, claiming that retail prices have increased by nearly ₹20 per kg in just 17 days, from around ₹46 to ₹65.

Kejriwal alleged that diverting sugarcane for ethanol production had reduced sugar availability and pushed up prices. He questioned the government’s decision to promote ethanol blending in petrol, saying the policy was aimed at reducing crude oil imports and saving foreign exchange but could now force India to spend foreign exchange on importing sugar.

He alleged that India, once a major sugar-exporting country, was now facing a situation where imports could become necessary. “They said ethanol blending would save foreign exchange spent on importing oil. Now we are being forced to spend the same foreign exchange on importing sugar,” he said.

The Centre imposed a stockholding limit on bulk consumers of sugar, amid concerns over rising prices due to tight supplies ahead of the festival season.

Food Minister Pralhad Joshi, announced that bulk consumers using more than 10 tonnes of sugar a month will not be allowed to hold stock beyond what they would consume in 15 days.

The order will come into force from September 1 and remain in effect till November 30.