India's Strategic Shift: Prioritizing Sugar Over Ethanol Production

India is considering restricting sugarcane usage for ethanol to boost sugar output amid high prices and reduced rainfall in key regions. The shift could prevent sugar imports by enhancing domestic supplies. The plan may affect ethanol production, relying more on corn and rice to meet blending targets.

In a strategic move to curb soaring sugar prices and ensure sufficient domestic supply, India is contemplating restricting the use of sugarcane for ethanol production in the upcoming season, sources within the government and industry have disclosed.

Unfavorable weather conditions, particularly reduced rainfall in Maharashtra and Karnataka, India's leading sugarcane-producing states, have heightened concerns over sugar output next year, prompting officials to consider prioritizing sugar production over ethanol.

Potential plans are underway to offset the shortfall in sugar supplies caused by these climatic challenges, with decisions expected by the end of next month.