NEW DELHI — The Congress on Thursday accused the Narendra Modi government of allowing an “artificial” sugar shortage that it claims has placed an additional burden of around ₹36,000 crore on consumers, while benefiting hoarders and black-market operators.
Congress general secretary and Rajya Sabha MP Randeep Singh Surjewala alleged that the sharp increase in sugar prices was not simply the result of market forces but was linked to government policies and delayed intervention. The party demanded greater transparency over the causes of the price rise and called for accountability from the Centre.
The allegations come as sugar prices have risen sharply ahead of the festive season, raising concerns about the impact on household budgets and food costs.
Congress blames an artificial shortage
Surjewala argued that the government was aware of emerging supply pressures but failed to take timely action.
According to the Congress, the situation allowed traders and black-market operators to benefit from higher prices while consumers were forced to pay more. The party has described the episode as an alleged ₹36,000-crore scam rather than an ordinary fluctuation in commodity prices.
The Congress has also linked the shortage to the government's ethanol-blending programme.
Party leaders claimed that approximately 32% of sugarcane production has been diverted toward ethanol production, reducing the quantity of sugar available for consumption.
Ethanol policy becomes a political flashpoint
India's push toward ethanol blending in petrol is designed to reduce dependence on imported crude oil, support farmers and promote alternative fuels.
However, the Congress argues that the expansion of ethanol production has created unintended consequences for sugar availability.
The opposition party says the diversion of sugarcane toward ethanol, combined with what it considers inadequate government intervention, contributed to the current price pressure.
The government has promoted ethanol as an important component of India's energy strategy, while the sugar industry has long been closely linked to the country's ethanol programme.
Consumers bear the burden
The Congress says the most immediate impact of the price increase is being felt by ordinary consumers.
Sugar is a basic household commodity and is also widely used by food-processing businesses, restaurants, sweet manufacturers and other industries. A sustained increase in prices can therefore have effects beyond the retail sugar market.
With the festive season approaching, demand for sweets and other sugar-intensive products typically rises, potentially increasing pressure on prices.
Congress leaders argue that the timing makes government intervention particularly important.
Opposition demands accountability
The party has called for an explanation of how sugar supplies were managed and why prices rose so sharply.
It also alleged that financial gains from the crisis could have benefited politically connected traders and that some of the money may eventually have reached the BJP through political donations. These are allegations by the opposition and have not been established as facts.
The accusations are part of a broader Congress campaign attacking the Modi government's economic policies and alleging that ordinary consumers are being forced to bear the costs of decisions that benefit powerful commercial interests.
BJP expected to challenge allegations
The Congress's claims are likely to trigger a political response from the BJP and the central government.
The government has defended its broader ethanol strategy as an important measure for India's energy security and agricultural economy. BJP supporters have also pushed back against opposition claims that ethanol blending is responsible for the entire increase in sugar prices.
The dispute is therefore developing into a wider argument over the balance between fuel policy, farmers' interests, sugar availability and consumer prices.
Sugar prices become a larger political issue
The controversy comes at a politically sensitive time, with opposition parties increasingly focusing on household expenses and the cost of essential commodities.
For Congress, the alleged ₹36,000-crore burden provides a powerful political narrative: consumers are paying more while traders and middlemen allegedly profit from a shortage that the party says could have been prevented.
The government, meanwhile, faces the challenge of maintaining its ethanol programme without creating excessive pressure on domestic sugar supplies.
The coming weeks will be closely watched as sugar availability, prices and government policy intersect with the festive-season demand cycle.
For now, the Congress is demanding answers over what it describes as an “artificial” crisis, while the broader debate is likely to focus on whether India's ethanol strategy and sugar policy can protect both farmers and consumers from sharp price swings.
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