Arvind Kejriwal questions the central government’s ethanol blending policy, linking increased sugarcane use for ethanol to reduced sugar supply and higher prices for Indian consumers. He warns of potential imports and strain on foreign exchange if shortages persist, urging policy review to balance farmers, consumers, and industry needs.
India
-Oneindia Staff
Aam Aadmi Party (AAP) National Convenor Arvind Kejriwal has questioned the Central Government’s ethanol policy over the recent rise in sugar prices across the country. He alleged that a significant diversion of sugarcane towards ethanol production has impacted sugar availability, leading to an increase in market prices.
In a video message released on Thursday, Kejriwal said that sugar prices have witnessed a sharp rise in recent days. He claimed that sugar, which was available at around ₹46 per kg 17 days ago, is now being sold at nearly ₹65 per kg.
Arvind Kejriwal questions the central government’s ethanol blending policy, linking increased sugarcane use for ethanol to reduced sugar supply and higher prices for Indian consumers. He warns of potential imports and strain on foreign exchange if shortages persist, urging policy review to balance farmers, consumers, and industry needs.
Kejriwal stated that the Centre had promoted ethanol blending in petrol with the objective of reducing dependence on imported crude oil and saving foreign exchange. However, he alleged that the increased use of sugarcane for ethanol production has affected sugar output and availability in the domestic market.
The AAP leader further said that India has traditionally been a sugar-exporting country, but discussions are now taking place about importing sugar. According to him, if sugar imports become necessary due to supply constraints, it could put additional pressure on foreign exchange reserves.
Kejriwal urged the Central Government to review the policy and ensure a balance between the interests of farmers, consumers and industry stakeholders. He said that rising sugar prices are directly impacting household budgets across the country. The Central Government has not yet issued an immediate response to Kejriwal’s remarks.
