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