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Congress’s Surjewala alleges Rs 35,000-cr ‘sugar scam’, targets BJP govt

Author: Anand Singh
Last Updated: August 27, 2026 20:14:51 IST

New Delhi, Aug 27: Congress leader Randeep Singh Surjewala on Thursday attacked the Modi government over the steep rise in sugar prices and accused it 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, Surjewala, who is also party’s general secretary 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 in August. 

Surjewala said the country is expected to consume around 12 million tonnes of sugar between August and November when there are maximum festivals like Navratri, Ganesh Chaturthi, Diwali, Dussehra, Dhanteras, Janmashtmi and others thus turning the sweetness of the festive season into a bitter experience for households.

He said that 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.

He also alleged collusion between profiteers and those in power. 

The Congress leader asserted that the rise in sugar prices to lower production and alleged diversion of stocks, as a “masterstroke” by the Modi government to benefit profiteers and black-marketeers.

He also targeted the 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.

He also claimed that the 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 per cent 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.

He also recalled the previous Congress government’s sugar subsidy programme, and highlighted that eligible consumers earlier received 500 grams of sugar per person per month through ration shops at Rs 13.50 per kg, benefiting around 40 crore people. He claimed that the government bore a subsidy of Rs 18.50 per kg under the scheme before it was discontinued in 2017.

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.

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