During the festive season in India, there has been a sharp increase in sugar prices, negatively affecting the consumption of sweets. In retail trade, the cost of one kilogram of sugar has reached 65 rupees and even exceeded this amount. This situation has led to increased activity in political circles and has become one of the main topics for the opposition.
Amid political disputes regarding the price hike, the government issued an official statement. Union Minister Prahlad Joshi refuted claims of sugar shortages in the country and cited two main reasons for the sharp increase in its cost.
During ongoing political discussions, where the opposition accuses the government of reducing sugar supplies due to the use of sugarcane for ethanol production, the government under N. Modi rejected these allegations. Union Minister Prahlad Joshi emphasized that the price increase is not related to ethanol.
He stated that to alleviate consumer concerns about sugar availability and rising retail prices before the festive season, the government is taking several measures, including temporary imports of raw sugar.
Prahlad Joshi pointed to two factors contributing to the rise in sugar prices: red rot disease and El Niño conditions. He noted that these factors led to a decrease in sugar yield, impacting agricultural production both in India and globally. Discussing this with the media, he said: 'Due to red rot disease (which was unexpected) and El Niño, there has been a decline in overall agricultural production, including sugar, not only in India but worldwide.'
He added that the government is extremely concerned about the rise in sugar prices in the country and has taken immediate action. According to him, the country's requirement is about 280 million tons, and there is currently a sufficient stock of sugar.
Joshi assured the public that there is no sugar shortage in the country and stressed that the government is taking all necessary steps to curb the recent price increase. He clarified that the country's sugar requirement is approximately 280 million tons, and there are currently about 36 million tons in stock. The minister noted that the government is closely monitoring prices and has instructed states to help bring existing stocks to the market so that consumers can purchase sugar at previous prices.
Furthermore, he mentioned that measures are being taken regarding imports due to the approaching festive season, including the temporary import of raw sugar.
Reports indicate a threat to sugar production due to El Niño, and concerns about a global sugar shortage are intensifying. There is growing pressure on global sugar supplies. Climate conditions associated with El Niño are becoming a significant factor affecting sugarcane yields in major producing countries. This raises questions about how adverse weather conditions affecting global production could create a significant worldwide sugar deficit, putting pressure on Indian production, prices, and exports.