Sugar price hike: Odisha, M.P., Punjab hit hardest; keeping close watch, taking measures to stabilise rates, says Centre, Pg1

Key Highlights:

• Sugar prices increased by ₹10-₹18 in 18 States and Union Territories over the past year, with Odisha, Madhya Pradesh, and Punjab experiencing the highest hikes.
• The Ministry of Consumer Affairs, Food and Public Distribution is actively monitoring the situation and has implemented measures to stabilize rates.
• The government imposed a stock limit of 400 tonnes on sugar dealers and restricted bulk consumer holdings from August 1 and September 1, respectively.
• The National Democratic Alliance (NDA) government allowed duty-free imports of 10 lakh tonnes of raw sugar under a Tariff Rate Quota (TRQ) until October 31.
• The Centre attributed the price hike to lower domestic production, increased festive demand, weather damage, and global supply issues, denying a link to ethanol diversion.

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Detailed Insights:

• Odisha recorded the highest sugar price at ₹64.72 per kg, marking a significant increase of ₹17.80 compared to the previous year.
• The national average price for sugar reached ₹58.23 per kg, reflecting a broad upward trend across the country.
• The government stated that the share of sugar diverted for ethanol production has declined from 12% in 2022-23 to 9% in 2025-26.
• Approximately three-fourths of the ethanol produced in India now originates from grains, primarily maize, rather than sugarcane.
• The Tariff Rate Quota (TRQ) aims to enhance domestic availability and curb further price increases by allowing specific duty-free imports.
• Opposition parties, including Congress and AAP, criticized the government's E20 fuel policy, linking it to reduced sugar output and rising food prices.
• Concerns were raised regarding the impact of E20 on vehicle mileage and compatibility, alongside its potential implications for food security.

Key Concepts Involved:

• E20 fuel policy: A policy promoting petrol blended with 20% ethanol to reduce reliance on crude oil imports and cut emissions.
• Ethanol blending: The process of mixing ethanol, an alcohol derived from biomass, with petrol to create a blended fuel.
• Tariff Rate Quota (TRQ): A trade policy tool that allows a specified quantity of a product to be imported at a lower or zero tariff rate.
• Stock limit: A government-imposed restriction on the maximum quantity of a commodity that traders or dealers can hold at any given time.