Low ending stocks will likely force India to stop sugar export, ethanol diversion early next season bl-premium-article-image
India allocated a 22.5 lakh tonne sugar quota for August, matching last year, to curb further price increases. With low sugar stocks and festival demand approaching, the government may temporarily limit sugarcane diversion for ethanol during the first three months of the 2026–27 season to ensure adequate domestic supply.
After consistently allocating lower sugar for sales in the domestic market, the Indian government has allotted a 22.5 lakh tonnes (lt) quota for August, which is the same as the year-ago period. This is seen as a move to check any further price rise.
However, with depleting stock of sugar in the country and limited option available for the government to augment supply, the festival demand during October-November will have to largely depend on fresh production.
Historically sugarcane crushing peaks up after Diwali when labour returns to work in sugarcane field and since this year the festival is to be celebrated November 8, the government may have to curb diversion of sugarcane juice for ethanol at least for first three months of the 2026-27 season to make sure domestic market gets adequate sugar, sources said.
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Source : The Hindu Businessline
