Odisha Minister blames ethanol for sugar price rise

Krushna Chandra Patra, Minister for Odisha Food Supplies and Consumer Welfare department has linked the recent rise in sugar prices to several factors and one of them being diversion of sugarcane for ethanol production. He said that this trend is being witnessed across the country.

The remarks come amid growing concerns over food inflation in Bhubaneswar and other parts of Odisha, where consumers are facing higher costs for several daily-use commodities.

Patra said the diversion of sugarcane towards ethanol had affected the availability of sugar and contributed to higher prices in the domestic market. Sugar prices in Odisha have increased significantly in recent weeks, adding to household expenses.

The minister also pointed to rising prices of onions and vegetables, attributing the increase to supply disruptions caused by heavy rainfall and flooding. Crop damage in several areas and disruptions in the movement of agricultural produce have further affected market supplies, according to Patra.

Patra said the state government was closely monitoring prices of essential commodities and keeping a watch on possible hoarding and other unfair trade practices. Traders found exploiting supply shortages to artificially raise prices would face action, he said.

He also expressed confidence that prices would gradually ease as weather conditions improve and supplies return to normal.

Raging Controversy

India’s aggressive push toward the E20 fuel blending target has triggered a heated “food vs fuel” political debate. Citing soared sugar prices, opposition leaders slammed the administration for “basic math failures,” claiming that diverting sugarcane and foodgrains (like maize) into vehicle fuel tanks creates artificial food shortages, hurts kitchen budgets, and forces the country to spend saved foreign exchange on importing sugar and corn instead.

The Economic Survey for 2025–26 also pointed out that India’s ethanol blending programme is increasingly reshaping cropping patterns in ways that could pose risks to food security.