India has witnessed a dramatic increase in sugar prices over the past month. Amid uproar that the increasing cost during festival time was due to the Modi government's E20 (ethanol) push, the Centre has finally broken its silence. In a statement on Friday (Aug 21), the Ministry of Consumer Affairs, Food &amp; Public Distribution rejected the claim that the increase is mainly linked to the diversion of sugar for ethanol production.The Ministry said a combination of domestic and global factors was behind the recent rise, while stressing that sufficient stocks are available to meet demand until the next crushing season.Notably, retail sugar prices rose from Rs 48.18 per kg on July 20 to Rs 55.70 per kg on August 20, according to the ministry.Now, the government has introduced measures to curb hoarding. Here's all you need to know.<h2>Why are sugar prices rising?</h2>The government attributed the increase to several factors, including lower-than-expected domestic sugar production, stronger demand ahead of the festive season, weather-related crop damage, tighter global supplies and speculation or hoarding by some sections of the industry.India's sugar production for the current season is now estimated at 306 lakh metric tonnes (LMT), down from an initial projection of 343 LMT. The ministry attributed the shortfall to crop problems, including Red Rot, Top Borer disease, and waterlogging caused by excessive rainfall.<h2>Is ethanol really behind the price rise?</h2>The government says no. "It is incorrect to attribute the recent increase in sugar prices to the diversion of sugar for ethanol production," the ministry said.It pointed out that the share of sugar diverted towards ethanol production has actually declined, from around 12 per cent in 2022-23 to around 9 per cent in 2025-26.At the same time, nearly three-fourths of India's ethanol production now comes from grains, particularly maize, it said.The ministry also argued that the ethanol policy has improved the financial position of sugar mills, helping them clear payments to farmers. By August 20, mills had cleared 97 per cent of cane dues for the 2025-26 season, according to the government.<h2>Global sugar shortage adds pressure</h2>India's domestic market is also being affected by international trends. The government estimates a 33 LMT global sugar deficit for 2026-27, with adverse weather affecting production in major markets.Global sugar prices rose from $474 per tonne on June 30 to $552 per tonne on August 20, an increase of more than 16 per cent in less than two months.<h2>What is the government doing?</h2>The Centre has introduced several measures to prevent further price escalation and ensure supplies during the festive season.A 400-tonne stock limit for dealers will remain in place until November 30, while bulk consumers will face a 15-day holding limit from September 1. Central and state teams are also conducting physical stock checks at sugar mills to detect hoarding and artificial scarcity.The government has additionally allowed duty-free imports of 10 LMT of raw sugar. Sugar mills have also been advised to begin crushing earlier, from October 15. The ministry expects this could push October production above 10 LMT, compared with the usual 3-4 LMT.The Centre said it would continue monitoring sugar stocks and market practices while balancing the interests of consumers and sugarcane farmers.

Sugar prices have jumped sharply ahead of the festive season, triggering a political row over ethanol. Now the Centre has rejected the E20 link and pointed to a mix of domestic crop losses, global shortages and possible hoarding.

India has witnessed a dramatic increase in sugar prices over the past month. Amid uproar that the increasing cost during festival time was due to the Modi government's E20 (ethanol) push, the Centre has finally broken its silence. In a statement on Friday (Aug 21), the Ministry of Consumer Affairs, Food & Public Distribution rejected the claim that the increase is mainly linked to the diversion of sugar for ethanol production. The Ministry said a combination of domestic and global factors was behind the recent rise, while stressing that sufficient stocks are available to meet demand until the next crushing season. Notably, retail sugar prices rose from Rs 48.18 per kg on July 20 to Rs 55.70 per kg on August 20, according to the ministry. Now, the government has introduced measures to curb hoarding. Here's all you need to know. Why are sugar prices rising? The government attributed the increase to several factors, including lower-than-expected domestic sugar production, stronger demand ahead of the festive season, weather-related crop damage, tighter global supplies and speculation or hoarding by some sections of the industry. India's sugar production for the current season is now estimated at 306 lakh metric tonnes (LMT), down from an initial projection of 343 LMT. The ministry attributed the shortfall to crop problems, including Red Rot, Top Borer disease, and waterlogging caused by excessive rainfall. Is ethanol really behind the price rise? The government says no. "It is incorrect to attribute the recent increase in sugar prices to the diversion of sugar for ethanol production," the ministry said. It pointed out that the share of sugar diverted towards ethanol production has actually declined, from around 12 per cent in 2022-23 to around 9 per cent in 2025-26. At the same time, nearly three-fourths of India's ethanol production now comes from grains, particularly maize, it said. The ministry also argued that the ethanol policy has improved the financial position of sugar mills, helping them clear payments to farmers. By August 20, mills had cleared 97 per cent of cane dues for the 2025-26 season, according to the government. Global sugar shortage adds pressure India's domestic market is also being affected by international trends. The government estimates a 33 LMT global sugar deficit for 2026-27, with adverse weather affecting production in major markets. Global sugar prices rose from $474 per tonne on June 30 to $552 per tonne on August 20, an increase of more than 16 per cent in less than two months. What is the government doing? The Centre has introduced several measures to prevent further price escalation and ensure supplies during the festive season. A 400-tonne stock limit for dealers will remain in place until November 30, while bulk consumers will face a 15-day holding limit from September 1. Central and state teams are also conducting physical stock checks at sugar mills to detect hoarding and artificial scarcity. The government has additionally allowed duty-free imports of 10 LMT of raw sugar. Sugar mills have also been advised to begin crushing earlier, from October 15. The ministry expects this could push October production above 10 LMT, compared with the usual 3-4 LMT. The Centre said it would continue monitoring sugar stocks and market practices while balancing the interests of consumers and sugarcane farmers.

Sugar prices have jumped sharply ahead of the festive season, triggering a political row over ethanol. Now the Centre has rejected the E20 link and pointed to a mix of domestic crop losses, global shortages and possible hoarding.

What's behind rising sugar prices in India? Government breaks silence, says 'ethanol...'

Punjab Legislative Assembly on August 4, during the second day of the monsoon session, unanimously passed a resolution opposing the Central Government's mandatory, nationwide rollout of E20 ethanol-blended petrol. The resolution was moved by the ruling administration and was supported by the opposition did not stop the rollout but formally urged the Union Government to suspend or roll back the compulsory implementation of the fuel blend containing 20 per cent ethanol and 80 per cent fossil fuel.&nbsp;This comes on the same day AAP chief Arvind Kejriwal moved towards the Prime Minister's residence with 2.30 lakh petitions against E20 and held a sit-in at the Firoz Shah Road. The resolution put forward in the assembly by Punjab Finance Minister Harpal Singh Cheema shed light on several public apprehensions such as the corrosive nature of the E20 blend, its cost to consumers for vehicle modification and loss of mileage. It further highlighted the impact on the agricultural and rural economy, where farmers use pump sets, light transport vehicles, and tractors which are heavily reliant on petrol; they are left with higher operational costs without any proper financial incentives and suitable alternatives for legacy engines.&nbsp;The state questioned why the Centre advanced the mandatory nationwide E20 target to 2026 instead of the originally planned 2030 deadline "without adequately safeguarding the interests of consumers, vehicle owners and the states".Also Read: <a href="https://www.wionews.com/world/us-army-long-range-missile-stockpiles-iran-war-report-1785854932249">US Army exhausts 'virtually all' long-range missile stockpiles during Iran war</a>"This House notes that while the objectives of reducing crude oil imports, enhancing energy security and promoting cleaner fuels are important national priorities, such policies must be implemented in a manner that is transparent, scientifically validated and sensitive to the concerns of citizens and state governments," read the resolution.Punjab Chief Minister Bhagwat Mann said that the policy was “imposed” on citizens without proper scientific evaluation and expert consensus. The resolution demanded unblended and lower blended petrol as a permanent alternative at the filing station, carry out rigorous domestic evaluation to assess long-term engine wear caused by high ethanol content and offer financial subsidies and compensation for consumers.The BJP has termed the resolution as “politically motivated" "factually misleading", and "against the interests of the state's farmers". Punjab BJP President Kewal Singh Dhilon said that E20 has no adverse effect on farmers as most agricultural machinery runs on diesel. He said the policy was progressive and aimed at strengthening India's energy security.&nbsp;

Punjab Assembly unanimously passed a resolution urging the Centre to suspend the mandatory nationwide rollout of E20 petrol, citing consumer, vehicle and farmer concerns.

Punjab Legislative Assembly on August 4, during the second day of the monsoon session, unanimously passed a resolution opposing the Central Government's mandatory, nationwide rollout of E20 ethanol-blended petrol. The resolution was moved by the ruling administration and was supported by the opposition did not stop the rollout but formally urged the Union Government to suspend or roll back the compulsory implementation of the fuel blend containing 20 per cent ethanol and 80 per cent fossil fuel. This comes on the same day AAP chief Arvind Kejriwal moved towards the Prime Minister's residence with 2.30 lakh petitions against E20 and held a sit-in at the Firoz Shah Road. The resolution put forward in the assembly by Punjab Finance Minister Harpal Singh Cheema shed light on several public apprehensions such as the corrosive nature of the E20 blend, its cost to consumers for vehicle modification and loss of mileage. It further highlighted the impact on the agricultural and rural economy, where farmers use pump sets, light transport vehicles, and tractors which are heavily reliant on petrol; they are left with higher operational costs without any proper financial incentives and suitable alternatives for legacy engines. The state questioned why the Centre advanced the mandatory nationwide E20 target to 2026 instead of the originally planned 2030 deadline "without adequately safeguarding the interests of consumers, vehicle owners and the states". Also Read: US Army exhausts 'virtually all' long-range missile stockpiles during Iran war "This House notes that while the objectives of reducing crude oil imports, enhancing energy security and promoting cleaner fuels are important national priorities, such policies must be implemented in a manner that is transparent, scientifically validated and sensitive to the concerns of citizens and state governments," read the resolution. Punjab Chief Minister Bhagwat Mann said that the policy was “imposed” on citizens without proper scientific evaluation and expert consensus. The resolution demanded unblended and lower blended petrol as a permanent alternative at the filing station, carry out rigorous domestic evaluation to assess long-term engine wear caused by high ethanol content and offer financial subsidies and compensation for consumers. The BJP has termed the resolution as “politically motivated" "factually misleading", and "against the interests of the state's farmers". Punjab BJP President Kewal Singh Dhilon said that E20 has no adverse effect on farmers as most agricultural machinery runs on diesel. He said the policy was progressive and aimed at strengthening India's energy security.

Punjab Assembly unanimously passed a resolution urging the Centre to suspend the mandatory nationwide rollout of E20 petrol, citing consumer, vehicle and farmer concerns.

Punjab Assembly passes resolution against Centre's mandatory E20 petrol rollout

Riding on the success of the Cockroach Janta Party, a new digital community, which has similarly named itself E20 Janta Party, has emerged and started making waves on the internet while protesting against ethanol-blended petrol. At the time of the filing of this story, the E20 party had 294,000 followers on Instagram.&nbsp;The E20 Janta Party is demanding the option to choose 100% original fuel at a discounted price and the resignation of Union Minister Nitin Gadkari.&nbsp;An account named ‘E20 Janta Party’ on X dates back to May 2024, suggesting that the name was different earlier and has been changed recently to encash the current social media trend of addressing issues through satire by gathering supporters online.&nbsp;The ‘E20 Janta Party’ X account had more than 52,000 followers on Monday.&nbsp;&nbsp;Also Read: <a href="https://www.wionews.com/india-news/india-summons-ukraine-ambassador-dr-oleksandr-polishchuk-after-attack-on-vessel-killed-indian-seafarer-1785146336433">India summons Ukraine Ambassador Dr. Oleksandr Polishchuk after attack on vessel killed Indian seafarer</a>&nbsp;<h2>‘E20 Janta Party is not a political party’</h2>&nbsp;It says in one post, “E20 Janta Party is not a political party.”“We are an independent citizens’ movement focused on raising issues that affect the common people. Our only agenda is to ensure transparency, protect consumer rights, and encourage an open public discussion on the real impact of India’s E20 (20% Ethanol Blended Petrol) policy,” it added.&nbsp;“We do not support or endorse any political party. Our support is for the people, not for any political ideology,” it said.&nbsp;Another post called for the resignation of Nitin Gadkari. “Nitin Gadkari ji must Resign!”&nbsp;&nbsp;Also Read: <a href="https://www.wionews.com/world/berlin-pride-attack-suspect-shot-dead-by-police-incident-classified-as-islamist-terror-attack-1785091454375">Berlin Pride attack suspect shot dead by police; incident classified as ‘Islamist terror’ attack</a>&nbsp;

<blockquote class="twitter-tweet">Nitin Gadkari ji must Resign!&mdash; E20 JANTA PARTY (@E20Party) <a href="https://x.com/E20Party/status/2081449703854702787?ref_src=twsrc%5Etfw">July 26, 2026</a></blockquote> <script async src="https://platform.x.com/widgets.js" charset="utf-8"></script>

&nbsp;<h2>‘No leader, minister can be bigger than the country’</h2>&nbsp;Another post that seems to be inspired by the CJP narrative says, “No leader, no Minister can be bigger than the country. The country is the greatest.”&nbsp;“For decades, many politicians in India behaved as if they were elected to rule the people. For the first time, Gen Z is reminding them of a simple truth: They were elected to serve the people. The era of rulers is fading. The era of public servants has begun. Those who forget the difference will keep losing their chairs,” the post read.&nbsp;Responding to questions on the identity of its founder, it said, “Please don’t get distracted by rumours about who is behind this movement or where it is being operated from. Such speculation only takes attention away from the real issue.”&nbsp;Also Read: <a href="https://www.wionews.com/india-news/nandan-nilekani-infosys-co-founder-and-aadhaar-architect-to-lead-pm-s-high-powered-task-force-1785079026251">Nandan Nilekani, Infosys co-founder and Aadhaar architect, to lead PM’s high-powered task force</a>&nbsp;Meanwhile, another account by the same name and around 28,000 followers announced a Parliament march on August 4, saying that taxi, tourist, and commercial vehicle owners from across India will march to Parliament to protest against E20 ethanol-blended petrol and the mandatory installation of expensive GPS and panic button systems.&nbsp;E20 fuel available at fuel stations is a blend of 20 per cent ethanol and 80 per cent petrol and was promoted to cut crude oil imports, lower vehicle emissions, and support farmers. The E20 fuel is described by the government as a technologically advanced fuel.&nbsp;Also Read: <a href="https://www.wionews.com/india-news/high-powered-task-force-on-exam-reforms-set-up-under-nandan-nilekani-pm-modi-1785073188370#">DMK founder Karunanidhi’s granddaughter booked for slapping SBI branch manager | Video</a>&nbsp;However, critics claim that E20 fuel reduces mileage and damages vehicle engines, but the government maintains it is safe and clean and that no laboratory tests or real-world usage has proven that E20 causes any damage or wear and tear to engines.&nbsp;The E20 Party’s arrival is being credited to the success of CJP, which withdrew its month-long protest last week after Dharmendra Pradhan resigned as education minister.

The new digital community named E20 Janta Party is demanding the option to choose 100% original fuel at a discounted price and the resignation of Union Minister Nitin Gadkari. The E20 Janta Party says in a post that it is an independent citizens’ movement focused on raising issues of people.

Riding on the success of the Cockroach Janta Party, a new digital community, which has similarly named itself E20 Janta Party, has emerged and started making waves on the internet while protesting against ethanol-blended petrol. At the time of the filing of this story, the E20 party had 294,000 followers on Instagram. The E20 Janta Party is demanding the option to choose 100% original fuel at a discounted price and the resignation of Union Minister Nitin Gadkari. An account named ‘E20 Janta Party’ on X dates back to May 2024, suggesting that the name was different earlier and has been changed recently to encash the current social media trend of addressing issues through satire by gathering supporters online. The ‘E20 Janta Party’ X account had more than 52,000 followers on Monday. Also Read: India summons Ukraine Ambassador Dr. Oleksandr Polishchuk after attack on vessel killed Indian seafarer ‘E20 Janta Party is not a political party’ It says in one post, “E20 Janta Party is not a political party.” “We are an independent citizens’ movement focused on raising issues that affect the common people. Our only agenda is to ensure transparency, protect consumer rights, and encourage an open public discussion on the real impact of India’s E20 (20% Ethanol Blended Petrol) policy,” it added. “We do not support or endorse any political party. Our support is for the people, not for any political ideology,” it said. Another post called for the resignation of Nitin Gadkari. “Nitin Gadkari ji must Resign!” Also Read: Berlin Pride attack suspect shot dead by police; incident classified as ‘Islamist terror’ attack

The new digital community named E20 Janta Party is demanding the option to choose 100% original fuel at a discounted price and the resignation of Union Minister Nitin Gadkari. The E20 Janta Party says in a post that it is an independent citizens’ movement focused on raising issues of people.

After CJP’s success, ‘E20 Janta Party’ makes waves, seeks ethanol-free petrol option and Gadkari’s ouster

Global transportation is shifting toward sustainability through petrol-ethanol blending programs designed to curb carbon emissions and boost energy independence. Currently, these nations are actively restructuring their fuel frameworks to transition into cleaner energy ecosystems.

Global transportation is shifting toward sustainability through petrol-ethanol blending programs designed to curb carbon emissions and boost energy independence. Currently, these nations are actively restructuring their fuel frameworks to transition into cleaner energy ecosystems.

Green fuel race: Which countries are leading petrol-ethanol shift? Check details inside

Mercedes-Benz has shared an official clarification claiming that its vehicles are compatible with E20 fuel, following a viral video by popular Indian daily vlogger Sourav Joshi, which claimed reduced performance due to E20 fuel. The luxury vehicle maker said that all BS- VI vehicles are “materially compatible” with the fuel blend."At Mercedes-Benz, customer safety, vehicle reliability and performance are of paramount importance to us." It added that all Mercedes-Benz petrol BS VI vehicles are materially compatible with E20 fuel and certified accordingly by relevant authorities," read the clarification by Mercedes-Benz. “We are happy to support customers with any technical queries. Mercedes-Benz remains committed to sustainable mobility.”Also Read: <a href="https://www.wionews.com/world/russia-tu-214pu-doomsday-aircraft-iran-us-iran-conflict-explained-1783941853939">Putin's mysterious Tu-214PU 'Doomsday plane' lands in Iran as US-Iran conflict spirals</a>

<blockquote class="twitter-tweet">Customer Advisory <a href="https://t.co/RxuTYl6Phz">pic.twitter.com/RxuTYl6Phz</a>&mdash; Mercedes-Benz India (@MercedesBenzInd) <a href="https://x.com/MercedesBenzInd/status/2076316245566345509?ref_src=twsrc%5Etfw">July 12, 2026</a></blockquote> <script async src="https://platform.x.com/widgets.js" charset="utf-8"></script>

This comes in response to a video by a popular vlogger who was raising concerns over ethanol-blended fuel. “I’m scared to fill ethanol-blended petrol in my car. My Mercedes used to give 16–17 km/l, but now it’s dropped to 5 km/l. My car will be ruined soon.” This claim added to the ongoing debate about the ethanol-blended fuel. He also claimed that the vehicle's digital cluster showed a reduction in total driving range from roughly 800 km to 480 km on a full tank. Joshi voiced severe anxiety over potential long-term engine damage and a fear of refuelling at local filling stations.A drop in mileage to 5 km is alarming, but fuel quality alone is not the only factor that changes; it could be due to driving habits, traffic congestion, poor tyre pressure, continuous AC usage, or specific component malfunctions.The oil ministry on Friday acknowledged that &nbsp;E20 could lead to a “3-5 per cent reduction in fuel economy”, but it added that the claims of engine damage were unsubstantiated. The manufacturer's user manual also suggests that blended fuel generally experiences a marginal mileage drop of roughly 1 to 6 per cent and reduces the distance travelled on a full tank.

<blockquote class="twitter-tweet" data-media-max-width="560">🚨🚗🇮🇳 India’s biggest vlogger, Saurav Joshi, raises concerns over ethanol-blended fuel: “I’m scared to fill ethanol-blended petrol in my car. My Mercedes used to give 16–17 km/l, but now it’s dropped to 5 km/l. My car will be ruined soon.” ⛽ His comments have sparked fresh…&mdash; Nova Intel (@intel_nova) <a href="https://x.com/intel_nova/status/2076284694690431007?ref_src=twsrc%5Etfw">July 12, 2026</a></blockquote> <script async src="https://platform.x.com/widgets.js" charset="utf-8"></script>

Mercedes-Benz says all BS-VI petrol vehicles are compatible with E20 fuel after YouTuber Sourav Joshi's viral video raised concerns over mileage and engine damage.

Mercedes-Benz has shared an official clarification claiming that its vehicles are compatible with E20 fuel, following a viral video by popular Indian daily vlogger Sourav Joshi, which claimed reduced performance due to E20 fuel. The luxury vehicle maker said that all BS- VI vehicles are “materially compatible” with the fuel blend. "At Mercedes-Benz, customer safety, vehicle reliability and performance are of paramount importance to us." It added that all Mercedes-Benz petrol BS VI vehicles are materially compatible with E20 fuel and certified accordingly by relevant authorities," read the clarification by Mercedes-Benz. “We are happy to support customers with any technical queries. Mercedes-Benz remains committed to sustainable mobility.” Also Read: Putin's mysterious Tu-214PU 'Doomsday plane' lands in Iran as US-Iran conflict spirals

Mercedes-Benz says all BS-VI petrol vehicles are compatible with E20 fuel after YouTuber Sourav Joshi's viral video raised concerns over mileage and engine damage.

Mercedes-Benz reacts to viral claims of mileage dropping from 800 km to 480 km

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What's behind rising sugar prices in India? Government breaks silence, says 'ethanol...'

Punjab Assembly passes resolution against Centre's mandatory E20 petrol rollout

After CJP’s success, ‘E20 Janta Party’ seeks ethanol-free petrol, Gadkari ouster

Green fuel race: Which countries are leading petrol-ethanol shift?

Mercedes-Benz reacts to viral claims of mileage dropping from 800 km to 480 km