# India mulls curbing sugarcane for ethanol to tame sugar prices

2026-08-11T02:04:25+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

The government is considering restricting the use of sugarcane for ethanol in the season starting October to boost sugar output and tame record prices, two government and two industry sources told The Hindu BusinessLine. Reduced rainfall in Maharashtra and Karnataka has raised concerns about next year's output. Sugar prices have risen 10% in the last month to a record high, and the government has already banned sugar exports and imposed stock limits. A decision on the ethanol curbs is expected by the end of next month. Separately, data from the All India Distillers' Association (AIDA) shows cumulative ethanol supplies crossed the 800-crore-litre mark in July, with grain-based feedstocks accounting for 76% of monthly supplies, up from 73% in June. Maize and surplus FCI grains each contributed 30 crore litres. Sugarcane-based ethanol fell to 22 crore litres, down from 28 crore litres in June. AIDA said the priority now is to create sufficient demand through higher ethanol blends and flex-fuel vehicles.

## Coverage

- thehindubusinessline.com <https://www.thehindubusinessline.com/economy/agri-business/govt-mulls-curbing-use-of-cane-for-ethanol-to-tame-record-high-sugar-market/article71328040.ece>
- thehindubusinessline.com <https://www.thehindubusinessline.com/economy/agri-business/indias-ethanol-supplies-cross-800-crore-litre-mark-grain-based-share-rises-to-76-in-july-aida/article71335211.ece>

Tags: ethanol blending, food inflation, fuel policy, Maharashtra, sugar prices, sugarcane
Canonical: https://indianopinion.org/govt-may-curb-cane-use-for-ethanol-to-cool-sugar-prices/
License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources.
Cite: https://indianopinion.org/govt-may-curb-cane-use-for-ethanol-to-cool-sugar-prices/#story-in-brief

Review state: restored archive article, accurate at time of publication, not offered to search indexes.
