U.P. Congress president urges PM Modi to review ethanol-blended fuel policy; questions rising sugar prices

Uttar Pradesh Congress chief Ajay Rai on Tuesday (August 24, 2026) wrote to Prime Minister Narendra Modi seeking an urgent review of the ethanol-blended fuel policy and steps to address “rising” sugar prices, arguing that the two issues are linked and need to be assessed from the perspective of consumers.

Mr. Rai raised concerns about whether the anticipated savings in foreign exchange from decreased petroleum imports could be fully achieved if domestic sugar shortages necessitated imports of the commodity, which would also require foreign exchange expenditure. “The actual account of ethanol, sugar production, domestic prices, and imports should be clarified to the public,” added Mr. Rai, a former Minister, in his letter.

In his letter, Mr. Rai reminded the Prime Minister that he had previously written to the latter on July 7, addressing “scientific, economic, environmental, and consumer interest-related inquiries” regarding ethanol-blended fuels. Mr. Rai pointed out that the government’s main argument supporting the ethanol policy from the Oil Ministry was that it would lessen reliance on petroleum imports and enhance the nation’s energy security. 

Mr. Rai added that Union Food Minister Shri Prahlad Joshi has also shown no responsibility for the steep rise in sugar and other food prices. “Unfortunately, he will now also oversee the Education Ministry,” Mr. Rai said. He said the government should undertake a comprehensive review of the ethanol policy, particularly in view of concerns among owners of older vehicles over E20 fuel.

Mr. Rai referred to recent comments by Chief Economic Adviser V. Anantha Nageswaran suggesting that lower-blend fuel such as E10 could again be made available alongside E20 to address concerns of owners of older vehicles. “When the government’s own senior economic adviser is talking about the need to provide consumers with an option, there should also be a comprehensive review of this policy,” Mr. Rai said.

He also questioned the role of Union Ministers Nitin Gadkari and Hardeep Singh Puri in the policy and reiterated his earlier demand for their removal from the Union Cabinet, alleging that they had failed to protect consumer interests.

“Carry out a Cabinet reshuffle if you wish, but in the interest of the people and a vigilant democracy, also answer questions concerning public interest,” Mr. Rai said.