Mumbai, August 22, 2026 (Yes Punjab News)
The Uddhav Thackeray-led Shiv Sena (UBT) has blamed the Centre’s ethanol-blending policy for the sharp rise in domestic sugar and jaggery prices, alleging that diversion of sugarcane for ethanol production has tightened supplies ahead of the upcoming Ganesh Chaturthi and Navratri festivals.
In an editorial in the party mouthpiece Saamana, the Shiv Sena (UBT) said retail sugar prices had risen by Rs 17 per kg in the past 15 days, reaching Rs 65-Rs 70 per kg.
The party attributed the shortage to the government’s target of achieving 20 per cent ethanol blending in petrol, known as E20. It argued that increasing quantities of sugarcane that would otherwise be processed into sugar are being diverted towards ethanol production under government incentives.
The editorial noted that sugar production is estimated to have risen from 25.8 million tonnes last year to 27.6 million tonnes this year. Despite the increase, it claimed domestic availability remains insufficient to meet consumption requirements alongside commitments for ethanol production.
The Thackeray-led party criticised the Centre for responding to the price rise only after the situation had worsened.
The editorial also questioned whether the higher sugar prices were benefiting sugarcane farmers, claiming that traders and other market intermediaries were receiving a substantial share of the gains.
It said the price increase had extended to jaggery as well, adding to inflationary pressure on household essentials including fuel, dairy products, onions and potatoes, as well as public transport and other services.
The party cited recent government measures aimed at containing prices, including tighter restrictions on sugar hoarding and proposed curbs on ethanol production. It said traders would be restricted from holding more than 10 per cent excess stock for over 15 days.
The government is also planning to import one million tonnes of sugar to strengthen domestic availability, according to the editorial.
The Shiv Sena (UBT) questioned whether policymakers should have anticipated the potential impact of the ethanol policy on sugar and other commodities.
“Why can’t the government foresee that a sugar shortage might occur in the country, causing a price blow to the public?” the editorial asked.
The party also criticised the Modi government over rising prices of several commodities and services, arguing that the burden was ultimately falling on ordinary consumers.
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