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Govt blames Red Rot, Top Borer disease, waterlogging for sugar price rise

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Govt blames Red Rot, Top Borer disease, waterlogging for sugar price rise

Home / Economy / News / Govt blames Red Rot, Top Borer disease, waterlogging for sugar price rise

Govt blames Red Rot, Top Borer disease, waterlogging for sugar price rise

No ethanol link to sugar price rise; millers jacking up rates, says govt

Shubham Kumar New Delhi 3 min read Last Updated : Aug 21 2026 | 10:12 PM IST

The government, on Friday, said Red Rot and Top Borer disease, coupled with waterlogging, caused a downward revision of domestic sugar production estimates by more than 10 per cent this season, from an initial estimate of 34.3 million metric tonnes (mmt) to around 30.6 mmt recently. The revision led to a nationwide uptick in sugar prices to record levels and reported supply constraints.

Sugar spot prices rose to a 16-year high of over Rs 5,300 per quintal in the benchmark Kolhapur market for medium grade on August 19 due to a supply crunch. The relentless rise in prices since March 2026 has not only prompted the government to clamp down on hoarding but also to permit the import of 1 mmt of duty-free sugar for the first time in nearly a decade.

In the statement issued today, the government denied recent reports linking the diversion of sugar for ethanol to supply shortfalls and price rises.

Normally, India has had a surplus of sugar, with 32-34 mmt produced annually, against domestic consumption of around 28-29 mmt.

Part of this excess produce is diverted to ethanol — around 9 per cent of sugar produced in 2025-26, a dip from 12 per cent in 2022-23.


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