All-India average retail price of sugar rose from ₹48.18 a kg on July 20 to ₹55.70 on August 20, an increase of about 16% in 1 mth. The immediate temptation is to blame ethanol and E20. But the story is more complicated.
Industry estimates suggest around 3 mn tonnes of sugar-equivalent output were diverted to ethanol in the 2025-26 season. That does not mean 3 mn tonnes of sugarcane land was shifted from food to fuel. Farmers do not grow separate cane for sugar and ethanol. The same cane can be processed into either at the mill.
