Gehlot Blasts Ethanol Policy Over Sugar Price Spike

Ashok Gehlot slams central ethanol policy, citing rising sugar costs, engine damage, and lack of planning.

Raaisha Upadhyay
Raaisha Upadhyay Verified Public Figure • 08 Aug, 2026 Journalist
Aug 22, 2026 • 5:00 PM
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Gehlot Blasts Ethanol Policy Over Sugar Price Spike
“Gehlot Blasts Ethanol Policy Over Sugar Price Spike”
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22 Aug 2026
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Gehlot Blasts Ethanol Policy Over Sugar Price Spike
Gehlot Blasts Ethanol Policy Over Sugar Price Spike

JAIPUR — Former Rajasthan Chief Minister Ashok Gehlot has launched a scathing attack on the central government’s ethanol blending program, warning that the rapid diversion of sugarcane toward biofuel production is driving up food prices and imposing severe financial strains on everyday consumers.

Speaking to reporters in Jaipur, the senior Congress leader alleged that the decision to blend high proportions of ethanol with petrol was implemented without adequate market research, technical preparation, or infrastructural readiness. According to Gehlot, the ripple effects are now spilling into the retail sugar market and the automotive sector.

"Another example of the Modi government's shortsightedness and wrong decisions is the decision to blend large quantities of ethanol with petrol without adequate preparation," Gehlot said. "The people of the country are having to suffer the consequences of this decision on several fronts."

Sugar Prices Surge Amid Supply Diversion

Central to Gehlot's criticism is the direct impact on household budgets. By reallocating significant volumes of sugarcane juice and B-heavy molasses toward bio-ethanol production to meet national blending targets, the domestic supply of refined sugar has faced immediate pressure.

Gehlot pointed out that retail sugar prices experienced a sharp spike of ₹14 to ₹17 per kilogram within a fortnight, attributing the sudden surge directly to supply shortages created by policy-driven diversion. The price hike arrives at a time when consumer budgets are already strained by broader inflationary pressures across essential commodities.

"In just 15 days, sugar prices have increased by Rs 14 to Rs 17 per kg," Gehlot noted, arguing that the policy disproportionately burdens middle- and lower-income families while benefiting select industrial processors.

Automotive Damage and Reduced Mileage

Beyond agricultural and retail concerns, the former Chief Minister raised alarms over the technical impact of high-blend ethanol fuels—such as E10 and E20—on standard internal combustion engines. Ethanol possesses lower energy density than pure petrol and absorbs moisture easily, which motorists across several states have reported as a cause of fuel line corrosion, component degradation, and noticeable drops in vehicle fuel efficiency.

Gehlot argued that citizens are essentially paying twice: first through higher pump prices for fuel that yields lower mileage, and second through unexpected mechanical repair bills.

"This is nothing short of looting the hard-earned money of the common man," Gehlot asserted, stating that ordinary vehicle owners are bearing the financial cost of poor policy execution.

Environmental Concerns and Demand for Review

Adding to the economic critique, Gehlot highlighted environmental red flags associated with the rapid expansion of ethanol distilleries. He cited growing complaints from regional communities regarding untreated industrial effluent discharging into local water bodies and elevated air emissions near major manufacturing hubs.

Concluding his remarks, the veteran politician urged the union government to step back from rigid blending timelines and execute a transparent, comprehensive review of the entire ethanol roadmap. He emphasized that future policy calibrations must balance green energy goals against food security, consumer protection, and environmental safeguards.

"The central government has taken such a decision without making adequate preparations, and the people of the country are now paying the price," Gehlot stated, calling for an immediate policy reassessment.

Raaisha Upadhyay Verified Public Figure • 08 Aug, 2026 Journalist

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