India weighs curbs on sugarcane-to-ethanol use for next season to boost sugar supply
India is considering curbs on diverting sugarcane to ethanol to protect domestic sugar supply after weak rainfall raised concerns about next season's cane output. If implemented, higher sugar availability could ease near-term supply tightness and temper price pressure. The policy also signals a potential slowdown in India's ethanol blending feedstock, affecting linked agricultural and energy-adjacent flows.
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India is considering limiting the use of sugarcane for ethanol production in the next crushing season after below-normal rainfall in key growing regions raised concerns about lower cane output. The move would prioritize domestic sugar supply to cool soaring prices. The government plans to make a final decision by the end of the month, and the measure, if adopted, would increase sugar availability and ease supply tightness.