Sugar Prices Hit Record High as India Considers Cutting Ethanol Production
Sugar prices in India have hit record highs due to concerns over production levels this season. The Centre is considering restricting the amount of sugarcane used for ethanol production, which could help offset the expected fall in sugar output.
The government plans to limit the diversion of sugarcane towards ethanol production, which currently accounts for about 10% of India's sugar output. This move aims to improve domestic sugar availability and stabilize prices ahead of the festival season.
To make up for any reduction in sugarcane-based ethanol, India may rely more on ethanol produced from corn and rice, where stocks are considered adequate. The Centre has already taken steps to boost domestic sugar production, including restrictions on sugar exports and stock limits for dealers.