India TV

Why are sugar prices rising? Govt rejects ethanol link, reveals real reasons behind the price surge

Sugar prices have risen sharply in the domestic market, but the government has rejected claims that the increase is linked to the diversion of sugar towards ethanol production. The Ministry of Consumer Affairs, Food & Public Distribution has attributed the recent price rise to lower-than-expected sugar production, stronger demand ahead of the festive season, weather-related crop damage, tightening global supplies and concerns over hoarding and speculation. It is incorrect to attribute the recent increase in sugar prices to diversion of sugar for ethanol production, the ministry said in a statement on Friday.