News Capsule: Rise in Indian Sugar Stocks on Hopes of Higher Ethanol Blending
05-Mar-2026 12:23 PM
News Capsule: Rise in Indian Sugar Stocks on Hopes of Higher Ethanol Blending
★ There is an expectation that the central government may increase ethanol prices. At the same time, the ethanol blending target may also be raised from 20 percent to 27 percent. Crude oil prices have increased by about 12 percent since the start of the West Asia conflict.
★ In addition, the estimated sugar production for the 2025–26 season is expected to decline from about 29.5 million tonnes to around 28 million tonnes, which is also supporting market sentiment.
★ If Brazil diverts more sugarcane towards ethanol production, global sugar supplies may decline, which could support prices.
★ In addition, the use of maize and rice for ethanol production may also increase, which could have an impact on maize prices.