Shiv Sena (UBT), led by Uddhav Thackeray, on Saturday, 22 August squarely blamed the Union Government's ethanol-blended petrol (E20) policy for the ongoing domestic sugar shortage and a sharp retail price spike, with sugar now selling at ₹65–₹70 per kilogram — up ₹17 in just 15 days. The party warned that the crisis is souring the mood ahead of Ganesh Chaturthi and Navratri festivals, when sugar and jaggery demand traditionally peaks.

The Ethanol Policy Argument

Writing in the party mouthpiece Saamana, the Thackeray camp argued that the root cause is the large-scale diversion of sugarcane away from refined sugar production and toward ethanol manufacturing, driven by government incentives to meet a 20% ethanol blending target. The editorial noted that despite annual sugar output rising from 25.8 million tonnes last year to 27.6 million tonnes this year, domestic availability has remained inadequate once ethanol processing commitments are factored in.

According to the editorial, sugarcane that would ordinarily feed sugar mills is increasingly being routed to distilleries, directly constricting retail supply and pushing prices higher.

Criticism of Government Response

The Saamana editorial characterised the Centre's corrective steps as too little, too late. The government has reportedly tightened anti-hoarding norms, restricting traders from holding more than 10% excess stock for longer than 15 days, and is said to be planning the import of 1 million tonnes of sugar to stabilise domestic supply. Proposals to restrict ethanol production from sugarcane are also reportedly under consideration.

'As usual, the ruling authorities have woken up late. Why do the government's strict and tough measures regarding inflation and price hikes always arrive a day late and a dollar short? Why can't the government foresee that a sugar shortage might occur in the country, causing a price blow to the public?' the editorial asked.

Jaggery Prices and Farmer Gains

The price pressure, the party argued, is not confined to refined sugar. Jaggery (gur) rates have also escalated sharply, the editorial noted, adding that the financial windfall from higher prices is largely accruing to market intermediaries and traders rather than to sugarcane farmers — who critics argue are the intended beneficiaries of any commodity price rise.

This comes amid a broader inflationary squeeze that, according to the editorial, spans fuel, dairy, onions, potatoes, and public transport fares.

Political Charge Against the Centre

The Thackeray camp escalated its rhetoric, arguing that policymakers who failed to anticipate that an aggressive ethanol blending drive would tighten sugar supply are 'unfit to govern.' The editorial accused the Modi government of operating 'entirely on guesswork,' alleging that a 'wildfire of price hikes' has spread across essential commodities, with the common citizen bearing the burden just as the festive season approaches.

The Centre has not formally responded to the Saamana editorial's specific allegations. How the government calibrates its ethanol blending ambitions against domestic food security pressures in the coming weeks will be closely watched by both industry and consumers.