Halting Sugar Exports Essential to Boost Ethanol Production

06-Apr-2026 07:47 PM

Mumbai. The domestic ethanol industry is actively lobbying to raise the targeted level of ethanol blending in petrol beyond the current 20 percent mark. In light of this, a global organization suggests that halting sugar exports would be necessary to push the blending level beyond 20 percent.

This measure would help increase the supply and availability of sugar within the domestic market, curb price inflation, and ensure a greater quantity of sugarcane is available for ethanol production.

India has already achieved its target of blending 20 percent ethanol in petrol. The industry is now urging the government to raise this target to the 25–30 percent range.

The government, however, currently finds itself in a dilemma. Sugar production is projected to fall significantly short of expectations, as production prospects in Uttar Pradesh are uninspiring, and sugar mills in Maharashtra and Karnataka have already shut down due to a shortage of sugarcane. The production outlook for the upcoming season remains uncertain. If the diversion of larger quantities of sugarcane for ethanol production is permitted, it could lead to a shortage of sugar for food consumption purposes.

It is noteworthy that India faced a sugar deficit during the 2022–23 season, leading to a ban on exports; subsequently, despite improved production in the 2023–24 season, exports were still not permitted.

For the 2024–25 season, the industry received approval to ship 1 million tonnes of sugar, of which approximately 800,000 tonnes were successfully exported. Now, for the current 2025–26 marketing season, approval has been granted for the export of 2 million tonnes of sugar.