# Sugar Out, Grain In: Ethanol Swaps One Food Crop for Another

> India’s 2026–27 ethanol tender seeks about 11 billion litres and excludes ethanol made from sugarcane juice, sugar syrup and B-heavy molasses, with sugar diversion for ethanol set to zero. Maize, damaged food grains, surplus government rice and C-heavy molasses remain eligible, as sugar production is forecast to fall and prices are high; the tender also reduces the incentive and procurement price for corn ethanol.

- Date: 2026-11-10 · published 2026-11-10T09:11:36.779Z
- Category: policy · region India · magnitude medium
- Page: https://feedsoft.ai/events/91512-sugar-out-grain-in-ethanol-swaps-one-food-crop-for-another
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Rough Rice](https://feedsoft.ai/c/RICE.md)

## Why it matters

The shift away from sugar-based ethanol transfers feedstock demand toward maize and surplus rice, potentially supporting their prices. Lower corn-ethanol incentives may temper maize demand, while the tender’s overall effect depends on how much grain-based supply replaces sugar-based output.

## Read by commodity

- CORN: bullish ▲
- RICE: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 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 | 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% |
| CORN | 2019-03-28 | [New record for U.S. ethanol production and exports in 2018 and an update on Iowa’s ethanol industry](https://feedsoft.ai/events/60116-new-record-for-u-s-ethanol-production-and-exports-in-2018-and-an-update-on-iowa.md) | -2.6% | -4.6% |
| CORN | 2021-12-07 | [Mali suspends grain exports amid fears of food shortages](https://feedsoft.ai/events/43676-mali-suspends-grain-exports-amid-fears-of-food-shortages.md) | -0.5% | -0.0% |
| RICE | 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) | -2.9% | -8.6% |
| RICE | 2025-04-11 | [Grain-based ethanol has potential to boost farmers income by ₹35,000 cr, says report - The HinduBusinessLine](https://feedsoft.ai/events/25103-grain-based-ethanol-has-potential-to-boost-farmers-income-by-35-000-cr-says.md) | +1.7% | -6.3% |
| RICE | 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) | -4.1% | -3.8% |

## Sources

- iamrenew.com: https://www.iamrenew.com/green-energy/sugar-out-grain-in-indias-ethanol-programme-swaps-one-food-crop-for-another/

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