# Sugar out, grain in: Policy shift in India's ethanol economy

> 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.

- Date: 2026-11-04 · published 2026-11-04T09:06:46.849Z
- Category: policy · region India · magnitude medium
- Page: https://feedsoft.ai/events/79450-sugar-out-grain-in-policy-shift-in-india-s-ethanol-economy
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

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.

## Read by commodity

- CORN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2025-06-26 | [India’s oilseed output may fall as farmers shift to maize for ethanol - The Economic Times](https://feedsoft.ai/events/24316-india-s-oilseed-output-may-fall-as-farmers-shift-to-maize-for-ethanol-the.md) | +4.6% | -1.5% |
| CORN | 2025-02-15 | [Feedstock economics and policy implications for India’s ethanol sector - The HinduBusinessLine](https://feedsoft.ai/events/26056-feedstock-economics-and-policy-implications-for-india-s-ethanol-sector-the.md) | +0.2% | -7.9% |
| CORN | 2025-07-28 | [Rate Difference in Grain-Based and Sugarcane-Based Ethanol Production Affecting Sector: Official – Outlook Business](https://feedsoft.ai/events/23740-rate-difference-in-grain-based-and-sugarcane-based-ethanol-production-affecting.md) | +0.5% | +0.7% |
| CORN | 2024-09-04 | [Ethanol push turns India into corn importer, shaking up global market](https://feedsoft.ai/events/28323-ethanol-push-turns-india-into-corn-importer-shaking-up-global-market.md) | -1.4% | +4.9% |
| CORN | 2019-11-06 | [Indiana grower touts ethanol at EPA hearing - Morning Ag Clips](https://feedsoft.ai/events/55930-indiana-grower-touts-ethanol-at-epa-hearing-morning-ag-clips.md) | -0.7% | -0.9% |

## Sources

- theweek.in: https://www.theweek.in/news/biz-tech/2026/11/04/india-ethanol-policy-sugarcane-ban.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.