Jairam Ramesh speaks in the Rajya Sabha during the Monsoon session of Parliament, in New Delhi. File
| Photo Credit: Sansad TV
The Congress on Friday (August 21, 2026) demanded an immediate review of the Centre’s E20 policy and sought the provision of non-ethanol petrol options, saying consumers were being forced to pay the price through higher food and transport costs.
In a post on X, Congress communications chief Jairam Ramesh said the diversion of sugarcane and foodgrains for ethanol production was contributing to higher prices of food items, while vehicles not designed for 20% ethanol blending faced concerns relating to mileage and compatibility.
“The people are paying the price for both expensive food and expensive travel because of the wrong decisions of the arrogant Modi government,” Mr. Ramesh said.
He demanded that the E20 policy be reviewed immediately and that consumers be provided non-ethanol options, adding that “a fuel policy under which both the vehicle and the kitchen become expensive” could not be acceptable to the country.
His assertions on food prices were based on a news report, which he claimed that 2.5 million tonnes of sugarcane meant for sugar production had been diverted to ethanol.
According to the figures cited by Mr. Ramesh, sugar prices had risen from ₹48 to ₹67 a kg and jaggery prices from ₹50 to ₹65 a kg over the past three months.
Rice and maize flour, he said, had become costlier by 16% and 11%, respectively, while animal feed prices had risen 10.34%.
Mr. Ramesh also questioned the absence of any reduction in petrol prices despite a decline in international crude oil prices and lower costs resulting from 20% ethanol blending.
He further alleged that alternatives to petrol had been limited to benefit ethanol producers, while serious questions remained over the impact of E20 on vehicle mileage and compatibility.
“Leader of the Opposition in the Lok Sabha Rahul Gandhi had been consistently raising the issue of alleged corruption in the implementation of the E20 policy,” Mr. Ramesh said.
The Congress Working Committee, he added, had on August 19 raised concerns over lower mileage, vehicle compatibility risks, limited consumer choice and environmental damage linked to the policy.
Published – August 21, 2026 12:11 pm IST
