22 August 2026

Sugar Price Stabilization and Grain-Based Ethanol Transition

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Why in news

  • The Centre issued a market update addressing domestic sugar price surges and clarifying ethanol feedstock diversion figures ahead of the festive season.

Sugar Production Dynamics and Pest Pressures

  • Estimated domestic sugar production for 2025-26 dropped from 343 LMT to 306 LMT due to waterlogging, Red Rot, and Top Borer disease.
  • International sugar prices rose by over 16% due to a projected global sugar deficit of 33 LMT for 2026-27.
  • Domestic availability remains sufficient until the new crushing season commences in October.

Structural Shift in Ethanol Feedstock

  • Sugar diversion to ethanol declined from 12% in 2022-23 to 9% in 2025-26, debunking claims that ethanol blending caused sugar price hikes.
  • Grain-based feedstocks, primarily maize, now account for nearly 75% of total domestic ethanol production.

Key terms

Red Rot Disease

A destructive fungal disease affecting sugarcane plants, caused by the fungus Colletotrichum falcatum.

Top Borer

A major lepidopteran insect pest of sugarcane that destroys the growing tip and causes 'dead hearts'.

Prelims facts

  • Maize has become the dominant feedstock under the Ethanol Blended Petrol (EBP) program.

Mains discussion

  • Balancing food security and sugarcane pricing with renewable bio-energy targets.

Source: PIB English

Same topic · past papers

UPSC has asked this before

These previous-year questions sit on the same topic. Open one to practise the earlier ask.

  1. 2022 · Q43 · General Studies · 2 marks

    "If rainforests and tropical forests are the lungs of the Earth, then surely wetlands function as its kidneys." Which one of the following functions of wetlands best reflects the above statement?

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  2. 2025 · Q45 · General Studies · 2 marks

    Consider the following substances: I. Ethanol II. Nitroglycerine III. Urea Coal gasification technology can be used in the production of how many of them?

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  3. 2025 · Q63 · General Studies · 2 marks

    Consider the following statements : Statement I: Of the two major ethanol producers in the world, i.e., Brazil and the United States of America, the former produces more ethanol than the latter. Statement II: Unlike in the United States of America where corn is the principal feedstock for ethanol production, sugarcane is the principal feedstock for ethanol production in Brazil. Which one of the following is correct in respect of the above statements?

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  4. 2024 · Q6 · GS III · 10 marks

    What is the technology being employed for electronic toll collection on highways. What are its advantages and limitations? What are the proposed changes that will make this process seamless? Would this transition carry any potential hazard?

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  5. 2024 · Q6(a) · PSIR GS 2 · 20 marks

    Would you concur with the view that of late, India's foreign policy has been in a transition mode from Nehruvianism to Neoliberalism? Support your answer with the help of suitable examples.

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← All Prelims + Mains notes for 22 August 2026

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