New Delhi: The Union government has rejected allegations that sugar prices are rising because sugar is being diverted for ethanol production.
Food Secretary Sanjeev Chopra said India produced 30.6 million tonnes of sugar this year and currently has sufficient stocks to meet domestic demand.
He noted that sugar prices rose from Rs 48 to Rs 56 around July 20, but mills have increased prices further to Rs 62 over the last 10 days. Calling the latest hike unacceptable, he indicated the government does not see a supply-side justification.
According to the Food Secretary, only 2.8 million tonnes of sugar has been diverted for ethanol. He added that ethanol is largely produced from grains such as maize, and that sugar accounts for only a limited share of ethanol feedstock.
Based on these figures, the government said there is no direct link between ethanol production and the recent spike in sugar prices.
