Sugar Prices Surge Ahead Of Diwali: Is India’s Ethanol Push Creating A Food-Versus-Fuel Crisis?

India’s sugar market is heating up just ahead of the festive season, with wholesale and retail prices climbing sharply. Maharashtra’s wholesale sugar prices have risen from ₹3,650 per quintal in March to ₹5,400 in August, while retail prices have touched ₹65 per kg in Punjab. A key factor is the growing diversion of sugarcane towards ethanol production as India pushes its E20 blending programme. With concerns over sugar availability and prices, the government has banned exports until September 30 and tightened inventory limits for bulk consumers. It is also reportedly considering scrapping the 100% import duty on sugar. India now faces a delicate food-versus-fuel balancing act.