22 August 2026

Sugar Price Stabilization and Grain-Based Ethanol Transition

समाचार में क्यों

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

मुख्य शब्द

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'.

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.

प्रीलिम्स तथ्य

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

मेंस चर्चा

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

स्रोत: PIB English

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