Sugar Prices Surge Rs 20/kg, Raju Shetti Alleges Rs 20,000 Crore Scam; Opposes Raw Sugar Imports

Former Lok Sabha member and Swabhimani Shetkari Sanghatana president Raju Shetti has alleged that the sharp increase in domestic sugar prices over the past week is “abnormal and suspicious” and could involve a Rs 20,000-crore scam benefiting a handful of stockists and black marketers.

In a letter to Prime Minister Narendra Modi, Shetti claimed that sugar prices have risen from around Rs 3,700 per quintal in August 2025 to nearly Rs 6,700 per quintal currently, despite a similar quantity of sugar being released for domestic consumption during August this year.

Questions sudden sugar price surge

Shetti cited sugar production of 260 lakh tonnes in the 2024-25 season and 290 lakh tonnes in 2025-26. With an opening carry-forward stock of around 50 lakh tonnes in 2024-25, he estimated that India had around 600 lakh tonnes of sugar available across the two years.

Against annual domestic consumption of approximately 280 lakh tonnes, total consumption over two years would be around 560 lakh tonnes, he said. Shetti therefore questioned where the remaining stocks had gone.

He also pointed out that the Centre released around 22 lakh tonnes of sugar for domestic consumption in August 2026, broadly similar to the quantity released in August 2025. Despite this, he said, prices have jumped sharply. “Where has the sugar evaporated?” Shetti asked, questioning mills' claims that they do not have adequate stocks.

Demands investigation into mills, traders

Shetti alleged that the sudden price increase could result in windfall gains of around Rs 20,000 crore for stockists and black marketers. He demanded a detailed scrutiny of sugar sales and financial transactions of sugar mills and traders over the past six months.

He also linked the rise in sugar prices to the returns that should accrue to sugarcane farmers. According to Shetti, based on current sugar prices, farmers should receive around Rs 5,500 per tonne for sugarcane. He further claimed that farmers were entitled to an additional payment of around Rs 1,000 per tonne for cane supplied during the current season.

Opposes raw sugar imports

Shetti also strongly opposed the Centre’s recent decision to permit imports of raw sugar. He argued that India has sufficient stocks and that imported sugar could depress domestic prices just as the 2026-27 sugar season is about to begin. According to him, a fall in sugar prices following imports could adversely affect sugarcane farmers at a time when they are expecting higher returns.

Calling the decision either a “policy and supervision failure,” Shetti urged the government to take immediate steps to stabilise sugar prices in the interest of sugarcane farmers. The letter was also marked to Union Home and Cooperation Minister Amit Shah and Union Minister for Food and Consumer Affairs Pralhad Joshi.