The Congress on Thursday (August 27, 2026) accused the Modi government of facilitating a ₹36,000-crore “sugar scam”, alleging that its failure to act on a shortage allowed hoarders and black-marketeers to profit from a sharp rise in sugar prices ahead of the festive season.
“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. Explaining the issue, he said that the opening stock of sugar for 2025-26 was 50 lakh tonnes, which was 30 lakh tonnes lower than the previous year. And on April 30 this year, the Indian Sugar & Bio-energy Manufacturers’ Association had stated that sugar production was 275 lakh tonnes.
Because of unremunerative prices, Mr, claiming that farmers were producing less sugarcane.
Addressing a press conference, Congress general secretary Randeep Surjewala said the government knew in April that there would be a shortage but “sat quietly” and did not act. “Due to less production and swindling of stocks, sugar has become expensive during the festive season,” the Congress leader said, alleging that “this is the Modi government’s new masterstroke to openly rob the public at the hands of profiteers and black marketeers”. The result is that cars are stuck in garages and people’s pockets are emptying,” he said. Surjewala said the government’s tall claims of “agricultural development” had utterly failed on the ground. “When the people of the country celebrate Dussehra and Diwali this time, the blow of inflation from the Modi government will be remembered again and again,” he said.
Further, he said around 120 lakh tonnes of sugar was expected to be consumed between August and November. And already, the price of retail sugar has gone from ₹45 to ₹75 per kg. At an additional ₹30 a kg, he said, consumers would collectively pay ₹36,000 crore more, benefiting hoarders and black-marketeers.
