Likely Decline in Sugarcane Use for Ethanol Production Next Season

05-Aug-2026 05:22 PM

Mumbai: Given the high and firm sugar prices in the domestic market, the utilization of sugarcane components for ethanol production is likely to decrease during the new crushing season commencing in October 2026. Although sugar prices softened briefly after the government imposed stock-holding limits on dealers, an upward trend has since re-emerged.

Industry analysts believe that the trend of rising sugar prices will persist until the start of the new marketing season, as the supply-demand equation is expected to remain complex. Sugar consumption and prices typically rise during the festive season; the festive period continues until October, followed by the wedding season starting in November.

For Indian millers, increasing sugar production rather than ethanol output could prove more profitable in the 2026-27 season. The President of the All India Distillers Association also concurs that millers may prioritize sugar production this time around. By the end of the current marketing season—September 30, 2026—the industry will be left with a stock of merely 4.1–4.2 million tonnes, which would be insufficient to meet even the domestic requirements for the subsequent two months. Sugarcane crushing operations may commence early this time.