Lucknow, Aug 25 (PTI) Uttar Pradesh Congress chief Ajay Rai on Tuesday 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.

He questioned whether the savings in foreign exchange claimed from reduced petroleum imports could be fully realised if shortages of domestic sugar resulted in imports of the commodity, which would also entail foreign exchange expenditure.

"The actual account of ethanol, sugar production, domestic prices and imports should be made clear to the people," he said in his leeter.

In his letter, Rai, a former minister, recalled that he had written to the prime minister on July 7 raising "scientific, economic, environmental and consumer interest-related questions" concerning ethanol-blended fuels.

Rai said the government's principal argument in favour of the ethanol policy by the Oil Ministry had been that it would reduce dependence on petroleum imports and strengthen the country's energy security.

According to government data cited by him, ethanol blending in petrol reached 19.24 per cent in 2024-25, with the policy moving towards achieving the 20 per cent blending target.

"However, on August 20, the government had to allow duty-free import of 10 lakh tonnes of raw sugar, for the first time in nearly a decade," Rai said.

Rai said 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," 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.

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," 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," Rai said.

With the festive season approaching, Rai expressed hope that the government would take concrete decisions on both ethanol policy and sugar prices.

"Festivals and religious occasions are about to begin in the country. I hope your government will now take a concrete decision on ethanol as well as sugar prices," he said. PTI ABN RT