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India has barred procurement of ethanol made from sugarcane juice, sugar syrup and B-heavy molasses for the 2026-27 supply year, reducing sugar diversion for ethanol to zero. Separately, amended motor vehicle rules now permit fuels with up to 100% ethanol for flex-fuel vehicles.
The government cites weakened sugar production estimates of 27 to 29 million tonnes.
Shifting ethanol feedstock away from sugar toward grain increases demand for maize and other grains for fuel use, which supports grain prices. Keeping more sugar for domestic food use eases sugar supply pressure in the domestic market.
theweek.inVaishali Basu SharmaNov 4, 2026After 318 past bullish policy events, Corn moved a median -0.1% over 5 sessions (48% higher; middle half -1.4% to +1.5%), and -0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
