India weighs curbing sugarcane use for ethanol from October as sugar prices hit record highs
AI Market Summary
India is considering limiting sugarcane diversion to ethanol next season to boost sugar output amid weak rainfall and record domestic sugar prices. With roughly 3M tons previously diverted, curbs could tighten ethanol feedstock supply from cane while supporting sugar availability; exports remain banned and stock limits are in place. The shift implies near-term support for sugar prices and may reallocate ethanol production toward corn and rice.
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India is considering cutting the amount of sugarcane diverted to ethanol production as domestic sugar prices reach record highs. Mills have diverted about 3 million metric tons of sugar—around 10% of total output—to ethanol in the current year ending September. Sugar prices have climbed about 10% over the past month on tighter supplies and stronger festival-season demand, and are expected to stay elevated for at least the next three months. To keep its 20% ethanol blending programme on track, the government may raise the use of corn and rice for ethanol production.
