Kolhapur: Maharashtra Medical Education Minister Hasan Mushrif has rejected claims that diversion of sugar for ethanol production was responsible for the recent surge in sugar prices, saying ethanol was not the main factor behind the increase, The Times of India reported.
Sugar prices had climbed to Rs 75-80 per kg in several major cities before easing after the Centre approved imports of 10 lakh tonnes of sugar and announced measures against hoarding. Prices have since remained around Rs 60 per kg, compared with about Rs 45 per kg at the beginning of August.
Mushrif said only limited quantities of sugar were being used for ethanol production and dismissed allegations that the diversion had tightened sugar supplies and pushed up prices.
“It is not true that sugar prices increased because of ethanol. Ethanol is not the villain here, as some leaders have claimed,” Mushrif said, according to The Times of India.
He pointed to restrictions on ethanol production from sugarcane juice and limits on the use of B-heavy molasses, saying sugar mills were largely dependent on C-heavy molasses for ethanol production.
The minister instead attributed the price increase to hoarding and weak enforcement of sugar sale regulations. He alleged that some mills had released sugar beyond their permitted monthly quotas despite sugar being covered under the Essential Commodities Act.
“The sugar price hike was artificial. Poor and middle-class consumers suffered because sugar mills sold sugar beyond their monthly release quota and adequate checks were not enforced,” he said.
Mushrif called for a detailed investigation into the price rise and stringent action against those responsible.
His comments come amid a wider debate over whether India’s ethanol blending programme and diversion of sugar towards ethanol have contributed to tighter domestic sugar supplies and higher prices.
Mushrif also defended Union Home Minister Amit Shah against criticism from farmer leader Raju Shetti, who had blamed Shah for the sugar price rise and alleged that sugar was being smuggled into Bangladesh from northern Indian states.
Mushrif said Shah’s experience with the cooperative banking sector and understanding of the sugar industry made it inappropriate to hold him responsible for the increase in sugar prices.
