UP Sugar Mills (UPSMA) rejects ethanol diversion as cause of sugar shortage

The Uttar Pradesh Sugar Mills Association (UPSMA) has rejected claims that the diversion of sugarcane towards ethanol production under the Ethanol Blended Petrol (EBP) Programme has caused a shortage of sugar in the domestic market or contributed to the recent rise in prices.

The association said sugar stocks held by its member mills remain sufficient to meet both regular consumption and the upcoming festival-season demand. It also maintained that the quantity of sugar diverted for ethanol production has declined over the years, while Uttar Pradesh continues to be the country’s largest ethanol supplier.

Uttar Pradesh, India’s largest sugar-producing state, has 121 sugar mills, including 95 privately owned units, making the state a key contributor to the country’s sugar supply.

UPSMA General Secretary Deepak Guptara said reports suggesting a physical shortage of sugar at the mill level were unfounded. According to the association, mills across the state have adequate carry-over and current stocks and are continuing supplies in line with the monthly sugar sales quotas issued by the Department of Food and Public Distribution.

The association attributed recent price fluctuations largely to market speculation rather than an actual supply deficit. It said there was no physical shortage at the mill level and urged consumers and market participants not to respond to rumours about an impending scarcity.

UPSMA said it remains in regular coordination with government authorities and that mills are prepared to increase operations if required to meet demand and policy needs.

Guptara also backed government measures against hoarding and the spread of misinformation, saying such practices could create unnecessary market distortions.

UPSMA reiterated its commitment to maintaining market stability and ensuring uninterrupted sugar supplies, while stressing that ethanol production should not be portrayed as the cause of the current price situation.