
India has barred diversion of sugar to ethanol for the 2026-27 Ethanol Supply Year (November 2026 to October 2027). Stockholding limits on sugar dealers have been tightened, with the general limit cut to 100 tonnes and the holding period reduced to 15 days, with restrictions set to run until 30 November 2026.
Keeping sugar out of ethanol production and restricting dealer stocks signals India is prioritising domestic sugar supply in a tight year, which supports sugar prices and limits feedstock diverted from ethanol.
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