New Delhi: The Congress on Thursday accused the Modi government of allowing a sugar shortage to develop, which it claimed could impose an additional burden of ₹36,000 crore on consumers as prices of the commodity rise during the festive season.
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Addressing a press conference here, Congress general secretary Randeep Surjewala alleged that the government knew in April about a sugar shortage but did not act, resulting in a rise in the price of the commodity from around ₹40 to ₹75 per kg.
He claimed that around 12 million tonnes of sugar are expected to be consumed in the country between August and November and that consumers could pay at least an additional ₹30 per kg during this period.
"When people celebrate Dussehra and Diwali, they will face the brunt of the price rise of sugar this year and shell out more from their pockets. The 12 million tonnes of sugar will amount to ₹36,000 crore, which will directly benefit hoarders and black-marketeers. What could be a bigger example of collusion with those in power?" Surjewala alleged.
He blamed the "wrong" policies of the Modi government for what he described as backbreaking inflation that has made the common man's life tough, leaving him unable to make ends meet.
The Congress leader accused the government of allowing a shortage of sugar to build up despite having advance knowledge of declining production and stocks, which he said had contributed to a sharp increase in retail prices and an additional burden on consumers during the four-month festive season.
"This is no less than a scam worth ₹36,000 crore," he said.
Surjewala said sugar prices rose from around ₹45 per kg to ₹70-75 per kg in August as the festive season began, alleging that profiteers and black-marketeers were benefiting while ordinary consumers were being forced to pay higher prices. He said the opening sugar stock for the 2025-26 season was 50 lakh tonnes, compared to 80 lakh tonnes in 2024-25, a decline of 30 lakh tonnes.
The Congress leader cited a press release issued by the Indian Sugar and Bio-energy Manufacturers Association (ISMA) on April 30, according to which sugar production in 2025-26 stood at 275 lakh tonnes. He contrasted this with the government's earlier projection of 343 lakh metric tonnes.
"By the end of April, the Modi government knew that a sugar shortage was looming because both production and opening stocks were substantially lower. Yet the Modi government deliberately chose to look the other way," Surjewala said.
He alleged that lower production and diversion of sugar stocks had contributed to higher prices during the festive season, describing it as "the Modi government's new masterstroke to openly rob the public at the hands of profiteers and black marketeers".
"BJP leaders are giving wisdom to the public by claiming that Prime Minister Narendra Modi has made sugar expensive to drive away diabetes and added it to petrol. The result is that cars are stuck in garages and people's pockets are emptying," Surjewala said.
Claiming that farmers are producing less sugarcane due to unremunerative prices, he said the government's tall claims of "agricultural development" have utterly failed on the ground.
The Congress leader also claimed that the government used 32 per cent of the sugarcane stocks in the production of E20 fuel between November 2025 and July 2026, resulting in reduced sugar stocks available for public consumption.
"The Modi government gets the praise for E20 fuel and people bear the consequences," he said.
Surjewala demanded that the government restore the scheme of providing 500 grams of sugar to every member of a family at subsidised rates through the Public Distribution System (PDS), a step introduced by the previous Congress government.
"When the people of the country celebrate Dussehra and Diwali this time, the blow of inflation from the Modi government will be remembered again and again," he said.
Surjewala noted that imported sugar from Brazil would take around 45 to 55 days to arrive in India and another 10-15 days would be required for processing.
"That means the sugar will become available in Indian markets only by the end of November, by which time the entire festive sugar-consumption season will be over," he said.
