Ethanol blending target responsible for surge in sugar and jaggery rates: Shiv Sena UBT

August 22, 2026

Mumbai: The Shiv Sena (UBT), led by Uddhav Thackeray, has blamed the Union government’s ethanol-blended petrol (E20) policy for the shortage of sugar and the sharp rise in domestic sugar prices.

In an editorial published in the party mouthpiece Saamana, the Thackeray-led faction said the diversion of sugarcane towards ethanol production to meet the government’s 20 per cent ethanol-blending target had reduced the availability of sugar in the domestic market.

The party said the price rise has triggered public concern ahead of Ganesh Chaturthi and Navratri, with retail sugar prices rising by Rs 17 in the past 15 days to Rs 65-70 per kg.

Shiv Sena UBT links sugar shortage to ethanol policy

According to the editorial, sugar production is estimated to rise from 25.8 million tonnes last year to 27.6 million tonnes this year. However, the party argued that domestic availability remains insufficient when demand for sugar is considered alongside the quantities of sugarcane being diverted towards ethanol production.

The editorial said sugarcane that would traditionally be processed into refined sugar is increasingly being used for ethanol production under government incentives, putting pressure on domestic supplies.

“As usual, the ruling authorities have woken up late. Now, the government claims to have taken strict measures against the sugar price hike, tightening rules and restrictions against sugar hoarding,” the editorial said.

It questioned why measures to control inflation and prices were being introduced only after shortages and price increases had already affected consumers.

Party questions government measures

The Saamana editorial described recent government steps, including tighter anti-hoarding restrictions and proposed curbs on ethanol production, as delayed responses to the situation.

It said new regulatory limits restrict traders from holding more than 10 per cent excess stock for longer than 15 days. The government is also planning to import 1 million tonnes of sugar to improve domestic availability and stabilise prices.

The Shiv Sena (UBT) said policymakers should have anticipated the possibility of sugar and other grain shortages arising from the ethanol policy.

Jaggery prices also rise, says Shiv Sena UBT

The party also claimed that the price rise has extended beyond refined sugar to jaggery, adding to the pressure on household budgets.

“The price increase is not limited to refined sugar; jaggery (gur) prices have also escalated sharply,” the editorial said, while arguing that sugarcane farmers were not benefiting proportionately from higher prices and that market intermediaries and traders were gaining instead.

The party linked the increase in sugar and jaggery prices to wider inflationary pressures affecting essential commodities and services, including fuel, dairy products, onions, potatoes and public transportation.

Shiv Sena UBT attacks Modi government

The Thackeray-led Shiv Sena also criticised the Narendra Modi government over its handling of inflation, accusing it of failing to anticipate the impact of its ethanol policy on sugar supplies.

The editorial said rising prices of essential commodities could make the upcoming Ganesh Chaturthi and Navratri festivals more expensive for ordinary households.

“The Modi government’s administration operates entirely on guesswork,” the editorial claimed, alleging that rising prices were affecting everything from fuel and food items to transportation.

The party said the government needed to address the concerns of consumers facing higher household expenses.