Now Reading: India mulls curbing sugarcane for ethanol to tame sugar prices
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India mulls curbing sugarcane for ethanol to tame sugar prices
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…
The Story in Brief
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.
The Indian Opinion
The narrative that the government is backtracking on ethanol ignores the steady shift to grain-based feedstocks. Data from AIDA shows grain ethanol now accounts for 76% of supplies, up from 73% in June. The programme is adapting, not stalling. The real test is whether ample corn and FCI rice stocks can sustain the 20% blending target without hurting sugar output. Will the government finalise curbs on cane ethanol by October, or will market forces decide?
Sources (2): thehindubusinessline.com, thehindubusinessline.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
