Indian Food Ministry asks States to ensure no sugar is diverted for ethanol
BusinessLine 1 hr ago·22 Oct 2026, 4:10 pm
The Indian Food Ministry has directed state governments to strictly prevent sugar from being diverted for ethanol production. This move aims to ensure that the domestic supply is primarily reserved for the domestic food market. The directive comes as the government seeks to stabilize prices and maintain adequate stocks for consumption.
For investors, this policy shift is significant. It suggests a tighter supply of raw sugar in the domestic market, which could support domestic prices. However, it also implies that the government is prioritizing food security over the alternative use of sugar for fuel.
Investors should watch for the government's official notification and the response from major sugar mills. The extent to which states enforce this rule will be key in determining the market's reaction and the future availability of sugar for export.
Excerpt from BusinessLine
Soon after oil marketing companies announced they would not purchase ethanol made from sugarcane juice/syrup or B-Heavy Molasses (BHM), the Food Ministry on Thursday wrote to all the sugar mills informing about a ban on the biofuel production from these two sugar-based feed stocks. In a letter, the Ministry h said…Read the original at BusinessLine
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