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Congress Demands E20 Review as Sugar Prices Jump to ₹67/kg
Congress demands E20 policy review as sugar jumps to ₹67/kg, citing 2.5M tonne sugarcane diversion to ethanol. Party says policy raises food costs, damages vehicles.
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The Congress party on Friday called for an immediate review of India's E20 ethanol-blending policy, arguing the mandate is raising food costs and hurting vehicle owners. The demand came as the party cited a 40% surge in sugar prices over three months, with the commodity rising from ₹48 to ₹67 per kg, and jaggery climbing from ₹50 to ₹65 per kg over the same period.
Congress general secretary Jairam Ramesh posted on X that 2.5 million tonnes of sugar-grade sugarcane had been diverted to ethanol production. He cited price increases of 16% for rice and 11% for maize flour, with animal feed costs up 10.34%. The party said the diversion of grain and sugarcane to fuel production was creating shortages in staple commodities.
"Due to the Modi government's shortsighted and anti-people E20 policy, inflation is rising on one hand, while vehicle owners are forced to bear the brunt of reduced mileage and vehicle damage on the other," Ramesh said in a post on X.
The E20 policy mandates a 20% ethanol blend in petrol. The government has promoted the policy as part of its energy security and emissions reduction goals. The Congress has argued the policy benefits ethanol producers at the expense of consumers.
Ramesh said that despite a drop in international crude oil prices and cost savings from ethanol blending, petrol prices had not been reduced. The party has questioned why consumers see no benefit at the pump.