Congress claims ₹36,000-crore loss from sugar diversion to fuel

Congress leader Randeep Surjewala has leveled allegations that the central government used 32 percent of available sugarcane stocks for E20 biofuel manufacturing between November 2025 and July 2026, according to party statements. The diversion, Surjewala contended, artificially constrained sugar availability in domestic markets and contributed to elevated prices during peak festive shopping periods. The Congress has calculated the alleged loss to consumers at approximately ₹36,000 crore based on the price differential between actual retail rates and what would have prevailed with normal supply levels.

The allegation centers on the government's push to increase ethanol-blended fuel production as part of India's renewable energy and agricultural byproduct utilization objectives. E20 fuel, which contains 20 percent ethanol, is increasingly promoted as a cleaner transportation alternative. However, the Congress argues that prioritizing fuel production over domestic sugar availability undermined consumer welfare during a critical period for household purchasing.

The charge adds to ongoing political debate over agricultural policy and resource allocation between food security and energy independence. If substantiated, the scale of sugarcane diversion would represent one of the largest supply-side interventions affecting commodity prices in recent years. The government has not yet responded to the specific allegations regarding the volume and timing of sugarcane utilization for biofuel production.