Member of Parliament and AICC General Secretary Randeep Singh Surjewala. File
| Photo Credit: Sushil Kumar Verma
The Congress on Thursday (August 27, 2026) accused the Modigovernment of facilitating a ₹36,000-crore “sugar scam”, alleging that its failure to act on a shortage allowed hoarders and black-marketeers to profit from a sharp rise in sugar prices ahead of the festive season.Also read | Why is there a sudden increase in sugar prices? | ExplainedAddressing a press conference, Congress general secretary Randeep Surjewala said the government knew in April that there would be a shortage but “sat quietly” and did not act. Explaining the issue, he said that the opening stock of sugar for 2025-26 was 50 lakh tonnes, which was 30 lakh tonnes lower than the previous year. And on April 30 this year, the Indian Sugar & Bio-energy Manufacturers’ Association had stated that sugar production was 275 lakh tonnes.Further, he said around 120 lakh tonnes of sugar was expected to be consumed between August and November. And already, the price of retail sugar has gone from ₹45 to ₹75 per kg. At an additional ₹30 a kg, he said, consumers would collectively pay ₹36,000 crore more, benefiting hoarders and black-marketeers.“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 120 lakh 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,” Mr. Surjewala asked.“Due to less production and swindling of stocks, sugar has become expensive during the festive season,” the Congress leader said, alleging that “this is the Modi government’s new masterstroke to openly rob the public at the hands of profiteers and black marketeers”.Mr. Surjewala claimed that the government had used 32% of sugarcane stocks for producing E20 fuel between November 2025 and July 2026, leaving less sugar available in the market for consumers.“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,” he said.Claiming that farmers were producing less sugarcane because of unremunerative prices, Mr. Surjewala said the government’s tall claims of “agricultural development” had utterly failed on the ground.The Congress leader 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, a measure 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. Published - August 27, 2026 07:42 pm IST
