India is considering reducing ethanol production from sugar cane due to domestic sugar shortages. Authorities are reviewing a proposal to limit the use of sugarcane juice for biofuel this season.
Poor rainfall has damaged sugarcane crops in India, leading the second-largest sugar producer to extend export restrictions beyond October 31. The potential limitation on ethanol production is seen as a measure to prevent further depletion of sugar inventories in the country. While it may help control food inflation, its impact is expected to be limited because some ethanol has already been sold earlier in the year and will need to be produced.
The Food Ministry has not provided a comment on the matter, and no final decision has been made, leaving room for potential changes in the plans. The situation reflects the challenges India faces in balancing its agricultural and energy needs amid adverse weather conditions affecting crop yields.
Update
The Indian government has issued an order instructing sugar mills not to utilize sugarcane for ethanol production.
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Last reviewed by Abhishek Sharma on February 7, 2026
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