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Centre rejects ethanol link to sugar price hike, cites lower production and crop damage

The Centre has rejected claims linking the sugar price hike to ethanol production, citing lower domestic output, festive demand, crop damage, global supply pressures and hoarding.

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The Centre has rejected claims that the recent increase in sugar prices is linked to the diversion of sugar for ethanol production. The government said the price rise has instead been driven by lower-than-expected domestic sugar production, increased festive-season demand, crop damage, tightening global supplies and hoarding.

Sugar prices increased from Rs 48.18 per kg on July 20 to Rs 55.70 per kg on August 20. The government has taken several measures to improve domestic availability and contain further price increases.

The Ministry of Consumer Affairs, Food and Public Distribution said it was incorrect to attribute the rise in sugar prices to ethanol production. According to the ministry, the proportion of sugar diverted for ethanol has actually declined from around 12% in the 2022-23 sugar season to about 9% in 2025-26.

The government also said nearly three-fourths of India’s ethanol production now comes from grains, particularly maize.

Sugar production estimate falls short

Sugar production during the current season is expected to be around 306 lakh metric tonnes (LMT), below the initial estimate of 343 LMT made by sugarcane-growing states.

The Centre attributed the production shortfall partly to sugarcane diseases, including Red Rot and Top Borer, along with waterlogging caused by excessive rainfall. Despite the lower output, the government said existing stocks are adequate to meet domestic requirements until the next crushing season begins in October.

Global sugar supply also under pressure

The government said rising sugar prices are not an India-specific issue, with global supplies also expected to tighten.

Government estimates indicate that the global sugar market could face a deficit of around 33 LMT in 2026-27. International sugar prices increased from $474 per tonne on June 30 to $552 per tonne on August 20, representing a rise of more than 16%.

Government measures to control sugar prices

The Centre has introduced several measures to prevent further price increases and ensure adequate supplies.

A stock limit of 400 tonnes has been imposed on sugar dealers across the country until November 30. From September 1, bulk consumers will also be restricted from holding sugar stocks equivalent to more than 15 days of consumption.

Government officials from the Centre and states are conducting physical verification of sugar stocks at mills to detect hoarding and prevent artificial scarcity.

The Centre has also approved duty-free imports of 10 LMT, or 1 million tonnes, of raw sugar to strengthen domestic supplies.

States and sugar mills have been advised to start the crushing season from October 15. The government expects sugar production in October to cross 10 LMT, compared with the usual 3-5 LMT, which could improve availability during the festive period.

Centre defends ethanol blending programme

The government also defended its ethanol-blending programme, saying it has helped reduce excess sugar stocks and improve the financial position of sugar mills.

India generally produces around 320-340 LMT of sugar annually, while domestic consumption is estimated at about 280-290 LMT. The Centre said surplus stocks can tie up working capital and contribute to delays in payments to sugarcane farmers.

According to the government, 97% of sugarcane dues for the 2025-26 season had been paid to farmers as of August 20. It also said the improved financial position of the sugar industry has reduced its dependence on government support.

The government said sugar prices for consumers have remained broadly stable over the longer term, rising by around 3% annually between August 2024 and July 2026.

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PM Modi, Putin share car ride in Delhi after bilateral talks

PM Modi and Vladimir Putin shared a car ride to Bharat Mandapam after bilateral talks, marking their fourth joint journey by car.

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PM Modi putin

Prime Minister Narendra Modi and Russian President Vladimir Putin shared a car ride in New Delhi on Friday after holding bilateral talks, marking their fourth joint journey by car.

The two leaders travelled together in a limousine to the INNOPROM exhibition at Bharat Mandapam, where the 11-member BRICS Summit is scheduled to take place. Their joint ride came a day before the summit.

Modi and Putin’s fourth joint car ride

PM Modi and President Putin have shared a car on three previous occasions. Their first such ride took place during the Shanghai Cooperation Organisation (SCO) Summit in China last year.

The two leaders also met earlier this month at an SCO summit in Kyrgyzstan. Putin’s most recent visit to India before the current trip was in December 2025.

Their latest joint journey followed a bilateral meeting in which the two leaders discussed several areas of the India-Russia relationship.

India-Russia talks cover trade, energy and defence

According to the Ministry of External Affairs, PM Modi and Putin held wide-ranging discussions on the India-Russia Special and Privileged Strategic Partnership.

The talks covered cooperation in areas including trade, energy, defence, space and people-to-people ties. The two sides also exchanged views on regional and global issues, including conflicts in West Asia and the Black Sea region.

PM Modi reiterated that dialogue and diplomacy remain the way forward for resolving conflicts and said India is ready to assist in peace efforts, according to the Ministry.

Modi gifts Putin Russian translation of Thirukkural

During the bilateral meeting, PM Modi presented Putin with a Russian translation of the Thirukkural, the classical Tamil work associated with the poet and saint Thiruvalluvar.

Modi said the translation of the ancient text into Russian could help strengthen people-to-people ties between India and Russia.

The joint car ride added another notable moment to the two leaders’ interactions ahead of the BRICS Summit in New Delhi.

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PM Modi calls for secure sea routes at BRICS event, references Hormuz

PM Modi highlighted the need for secure sea lanes, open supply routes and seafarer safety at the BRICS Business Forum amid tensions in the Strait of Hormuz.

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PM Modi

Prime Minister Narendra Modi on Friday stressed the importance of secure maritime routes and the safety of seafarers while addressing the BRICS Business Forum in New Delhi.

Speaking at the forum, which was also attended by Iranian President Masoud Pezeshkian, PM Modi linked the growth of global trade with the need to keep sea lanes secure, supply routes open and seafarers safe.

PM Modi stresses freedom of navigation

PM Modi said that global trade can progress only when maritime routes remain secure and supply lines stay open. He also reaffirmed India’s support for freedom of navigation and the safety of seafarers.

The remarks came against the backdrop of recent attacks on ships, particularly in and around the Strait of Hormuz. The strategically important waterway has been affected by the ongoing conflict involving the United States and Iran.

The issue of maritime security is also significant for India because disruptions to shipping routes can affect trade and the safety of Indian seafarers.

PM Modi highlights BRICS economic growth

During his address, PM Modi also highlighted the expanding economic importance of the BRICS grouping.

He said BRICS countries now account for around 50 per cent of the world’s population, 40 per cent of global GDP and more than 25 per cent of global trade. According to the Prime Minister, the combined GDP of BRICS nations has expanded nearly four-and-a-half times, compared with global GDP growth of about two-and-a-half times.

PM Modi described BRICS countries as emerging centres for innovation and said the business forum being hosted by India was the largest BRICS Business Forum so far.

Focus on trade and business cooperation

The Prime Minister also spoke about India’s efforts to reduce trade barriers and expand opportunities for businesses.

He said India has entered into free trade agreements with 40 countries and highlighted new cooperation networks established under India’s BRICS presidency in areas including agriculture, healthcare, skills and smart grids.

PM Modi also referred to initiatives such as the BRICS Incubator Network, BRICS MSME Portal and BRICS Startup Innovation Fund, aimed at connecting startups and small businesses with markets and finance.

Iran highlights global economic uncertainty

Iranian President Masoud Pezeshkian, who was present at the forum, spoke about the impact of geopolitical uncertainty and supply-chain disruptions on the global economy.

He said geopolitical tensions and the use of economic measures as political instruments had made the environment for countries and businesses more complicated. Pezeshkian argued that BRICS should turn its economic potential into practical cooperation in trade, investment and joint financing.

Russian President Vladimir Putin also spoke about major structural changes taking place in the global economy, saying new engines of growth were emerging.

PM Modi separately held bilateral meetings with Russian President Vladimir Putin and President Pezeshkian on the sidelines of the 18th BRICS Summit. During his meeting with Putin, Modi said dialogue and diplomacy were the way forward for resolving conflicts.

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Shashi Tharoor lists BRICS benefits after P Chidambaram questions gains

Shashi Tharoor highlighted BRICS’ diplomatic value and role for the Global South after P Chidambaram questioned the tangible benefits India has gained from recent summits.

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Shashi Tharoor

Congress MP Shashi Tharoor has highlighted the diplomatic and global significance of BRICS after senior party leader P Chidambaram questioned the tangible benefits India has received from recent meetings of the grouping.

Speaking ahead of the BRICS summit in Delhi, Tharoor described BRICS as an important platform for the Global South and said hosting the summit was a matter of prestige for India. He also acknowledged challenges within the grouping, including differences among member countries and India’s trade imbalance with BRICS nations.

What Shashi Tharoor said about BRICS benefits

Tharoor said BRICS provides an important platform for the Global South. He pointed out that the grouping has 11 countries representing a majority of the world’s population and 41% of global GDP.

According to Tharoor, the size and diversity of the grouping make it significant on the global stage. He said the platform should therefore be taken seriously by other countries.

He also highlighted the importance of India hosting the BRICS summit. Tharoor said the presence of several heads of state and government, along with observers attending at the presidential and prime ministerial level, was a matter of prestige for India.

He linked the summit to India’s diplomatic convening power, saying that its value extends beyond immediate outcomes.

Tharoor flags challenges for BRICS

While listing the benefits, Tharoor also acknowledged that BRICS faces several challenges.

One of the key issues, according to him, is the difficulty of reaching a common position on major international developments. He pointed to differences over the Iran war and the Russia-Ukraine conflict.

Tharoor noted that when BRICS foreign ministers met in New Delhi in May, the countries were unable to agree on a joint statement. India, as the chair, instead issued a chair’s declaration.

He said the ability of the grouping to reach consensus would remain an important challenge for diplomats.

India faces trade imbalance with BRICS countries

Tharoor also raised concerns about the economic side of BRICS.

He said trade among BRICS countries has been growing but argued that the trend has been disadvantageous for India. According to him, India’s exports to BRICS countries have declined while imports from those countries have increased.

This trade imbalance was presented as one of the practical concerns that India needs to consider while assessing its engagement with the grouping.

What P Chidambaram said about BRICS

Tharoor’s comments came a day after former Union minister and Congress leader P Chidambaram questioned the tangible benefits India has received from recent BRICS summits.

Chidambaram said he did not think the last two or three BRICS meetings had produced significant tangible benefits or results for India.

He also pointed out that India participates in several multilateral groupings, including BRICS, the Shanghai Cooperation Organisation, the G20 and the Quad, and questioned what concrete benefits the country had received from them.

The BJP criticised Chidambaram’s remarks and described him as part of the “naraaz phupha” group that, according to the party, could not accept India’s progress.

Why are BRICS benefits being debated?

The latest exchange highlights two sides of the BRICS debate.

Chidambaram has questioned whether the grouping has delivered enough concrete outcomes for India, while Tharoor has emphasised its diplomatic importance, its representation of the Global South and India’s ability to bring major countries together.

At the same time, Tharoor has acknowledged challenges related to consensus and India’s trade position within the grouping.

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