India may halt sugar diversion for ethanol in 2026-27 amid supply concerns
In India, Chini Mandi reported that the Government of India is set to bar the diversion of sugarcane juice, syrup and B-heavy molasses for ethanol production during the 2026-27 ethanol supply year (ESY), beginning November, given tightening domestic sugar supplies and expectations of lower output in Maharashtra and Karnataka.
The government determines the quantity of sugarcane juice, syrup and B-heavy molasses that can be diverted for ethanol to support the mandatory ethanol blending target in petrol, according to the report.
Restricting such diversion would allow mills to recover more sugar from available cane, helping improve domestic supplies and meet consumption needs, the report added.
The government has said the share of sugar diverted for ethanol fell to around 9% in 2025-26 from about 12% in 2022-23.
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Category: Fuels
