Uttar Pradesh Sugar Mills Association Rejects Ethanol Blending Link To Sugar Price Rise, Says Stocks Adequate

Lucknow, August 25, 2026: The Uttar Pradesh Sugar Mills Association (UPSMA) has rejected claims that diversion of sugar for the Ethanol Blended Petrol (EBP) programme is responsible for the recent rise in sugar prices, saying the allegations are not supported by facts.

In a statement issued on Tuesday, the association said the quantity of sugar being used for ethanol production has actually declined over the past few years. It also pointed out that Uttar Pradesh remains the country's largest supplier of ethanol.

UPSMA said it was concerned about reports and public apprehensions over sugar availability and domestic supplies amid rising prices. The association said all its member mills have adequate stocks of sugar and there is no shortage at the mill level.

Sugar Stocks Sufficient

The association also rejected reports of artificial scarcity and said it considers hoarding or unnecessary accumulation of stocks responsible for price fluctuations to be a matter of concern. It said sugar stocks available with mills in the state are sufficient to meet household consumption requirements during the festival season and there is no shortage of sugar at the mill level.

According to UPSMA, it is in continuous contact with officials of the state and central governments and is working according to their directions so that action is taken on time based on demand and policy requirements.

The association said the Uttar Pradesh government is closely monitoring sugar prices and that action is being taken against elements allegedly trying to misuse the situation by spreading rumours or misinformation.

Uttar Pradesh Leads Production

Uttar Pradesh has 121 sugar mills, of which 95 are in the private sector, making the state the country's largest sugar producer. UPSMA said these mills form the backbone of domestic sugar supplies and reiterated that its members maintain adequate stocks.

The association further said its members release sugar into the market in accordance with the monthly sale quota issued by the Department of Food and Public Distribution (DFPD), Ministry of Consumer Affairs, Food and Public Distribution, Government of India.

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Association Appeals For Caution

UPSMA termed reports of a possible sugar shortage a rumour and urged consumers and the media not to rely on unverified information. It said the association, along with the central and state governments, is committed to maintaining stability and uninterrupted supplies in sugar markets.

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