Congress alleges Rs 36,000-crore sugar scam, says Centre aided hoarders and black-marketeers

The Congress on Thursday accused the Narendra Modi government of facilitating an alleged 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 a potential sugar shortage in April but failed to take timely action, resulting in prices rising from around Rs 40 to Rs 75 per kg.

Surjewala said the country is expected to consume around 12 million tonnes of sugar between August and November. If consumers are forced to pay an additional Rs 30 per kg, the resulting 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 collusion between profiteers and those in power.

Surjewala attributed the rise in sugar prices to lower production and alleged diversion of stocks, calling it a “masterstroke” by the Modi government to benefit profiteers and black-marketeers.

He also criticised BJP leaders over remarks linking higher sugar prices to 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 that farmers were producing less sugarcane because of unremunerative prices and alleged that the government's claims of agricultural development had failed on the ground.

He further claimed that 32% of sugarcane stocks were used to produce 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 government restore the previous Congress-led scheme under which 500 grams of sugar was provided to every family member at subsidised rates through the Public Distribution System.

He said consumers would again feel the impact of inflation when they celebrate Dussehra and Diwali this year.

(With inputs from PTI)