India Halts Sugar Diversion to Ethanol to Curb Domestic Prices
· Business · Bloomberg, Moneycontrol
India has ordered state-owned fuel retailers to stop procuring ethanol made from sugar and key sugarcane-based feedstocks. The directive aims to keep a lid on domestic prices of the sweetener following poor crop yields. El Nino weather patterns severely impacted sugarcane cultivation across major producing regions, lowering overall output. Officials implemented the restriction to prioritize domestic food supply and stabilize retail sugar costs. The report does not specify when the diversion ban will be lifted.
Why it matters
Sugarcane farmers face lower procurement demand from fuel retailers, while domestic consumers benefit from controlled retail sugar prices.
Read the original report — Bloomberg
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