Is Ethanol Production Fueling India's Soaring Sugar Prices?
A surge in sugar prices by nearly 40% in a month has raised questions about the role of ethanol production in India.
By News Rush Point Desk

A surge in sugar prices by nearly 40% in a month has raised questions about the role of ethanol production in India. Once seen as a solution to India's sugar issue, ethanol is now under scrutiny for potentially exacerbating the problem. The country has aggressively promoted ethanol production and accelerated the adoption of E20 petrol ahead of schedule. However, two leading agricultural economists from the Indian Council for Research on International Economic Relations (ICRIER) offer differing opinions on the extent to which ethanol is responsible for the current sugar crisis. As India grapples with maintaining affordable food prices and ensuring fuel security, this debate is critical. The government recently allowed sugar imports as a response to the price surge, but opposition parties blame cane diversion for ethanol production. The sharp rise in sugar prices has been attributed to lower-than-expected domestic production, increased demand ahead of festivals, weather-related damage to sugarcane crops, tight global supplies, and speculation by some industry players.
Filed underIndia
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