News Capsule: Rising Crude Prices May Push Brazil Towards Ethanol, Impact Global Sugar Supply
07-Apr-2026 10:20 AM
News Capsule: Rising Crude Prices May Push Brazil Towards Ethanol, Impact Global Sugar Supply
★ Rising crude oil prices driven by tensions in West Asia are beginning to impact the global sugar market. As fuel becomes more expensive, countries are increasingly shifting towards alternative energy sources. This could reduce global sugar availability and push international prices higher.
★ In this context, Brazil, the world’s largest sugar producer and exporter, is likely to divert a larger share of sugarcane towards ethanol production in the 2026–27 season. Brazil’s new crushing season begins in April, and any shift in policy is expected to have a direct impact on global supply.
★ Last year, Brazil exported around 33 million tonnes of sugar, but exports are expected to decline to about 29 million tonnes this season. Overall production is also projected to fall from 43 million tonnes to around 40 million tonnes.
★ This development could have implications for India as well. Lower exports from Brazil may boost global demand for Indian sugar. ★ However, balancing exports with the country’s ethanol blending programme while maintaining stable domestic prices will remain a key challenge for policymakers.
★ Overall, these global shifts could reshape the direction of the sugar market in the coming months.