Sugar Output May Fall 11% Below Estimate; Govt Rejects Ethanol Diversion Link The Indian government has revealed that sugar production is expected to fall 11% short of initial estimates, sparking a sharp spike in retail prices.
This development is merely the symptom of deeper issues plaguing the sector. One major factor at play is the diverging interests of various stakeholders, including sugarcane growing states and ethanol producers.
The latter's increasing demand for sugar has led to a shift towards ethanol production, resulting in smaller allocations for traditional sugar manufacturing.