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The Economic Times

Opinion / The Economic Times

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Ethanol is not the whole story behind Indias sugar price surge

Sugar prices have significantly increased due to production shortfalls and rising demand. Government data shows a substantial decline in expected sugar production for the season. International market trends and domestic supply issues also contribute to the current price situation. Ethanol diversion is a factor, but not the sole cause of the sugar price surge. Policymakers are addressing broader supply and inventory concerns with import decisions.

24 Aug 2026 11:00 pm