Daijiworld Media Network - New Delhi
New Delhi, Aug 27: The Congress on Thursday accused the Narendra Modi government of allegedly facilitating a Rs 36,000-crore sugar scam by allowing hoarders and black-marketeers to profit from rising sugar prices ahead of the festive season.
Addressing a press conference, Congress general secretary Randeep Surjewala alleged that the government was aware of the possibility of a sugar shortage in April but failed to take timely measures, resulting in prices increasing from around Rs 40 to Rs 75 per kg.
Surjewala said India is expected to consume around 12 million tonnes of sugar between August and November. If consumers are made to pay an additional Rs 30 per kg, the total additional burden would amount to around Rs 36,000 crore, which he claimed would benefit hoarders and black-marketeers.
“When people celebrate Dussehra and Diwali, they will face the brunt of the price rise of sugar this year and shell out more from their pockets,” he said, alleging a nexus between profiteers and those in power.
Surjewala attributed the increase in sugar prices to lower production and alleged diversion of stocks, describing it as a “masterstroke” by the Modi government to benefit profiteers and black-marketeers.
He also criticised BJP leaders for remarks linking higher sugar prices with efforts to discourage diabetes.
“BJP leaders are giving wisdom to the public by claiming that Prime Minister Narendra Modi has made sugar expensive to drive away diabetes and added it to petrol. The result is that cars are stuck in garages and people's pockets are emptying,” he said.
Surjewala claimed farmers were producing less sugarcane because of inadequate returns and alleged that the government's claims of agricultural development had failed to translate into benefits for farmers.
He further alleged that 32 per cent of sugarcane stocks were diverted towards production of E20 fuel between November 2025 and July 2026, reducing the quantity of sugar available for consumers.
“The Modi government gets the praise for E20 fuel and people bear the consequences,” he said.
Surjewala demanded that the Centre restore the earlier Congress-led scheme under which 500 grams of sugar was provided to every family member at subsidised rates through the Public Distribution System (PDS).
He said consumers would once again bear the impact of inflation while celebrating Dussehra and Diwali this year and urged the government to take immediate steps to bring down sugar prices.