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Informist, Thursday, Jul. 24, 2025

MUMBAI – India's diversion of sugar to produce ethanol is seen rising to 23% in 2034 from 9% in 2022-24, according to the Agricultural Outlook 2025-34 by the Organisation for Economic Co-operation and Development and Food and Agriculture Organization. The rise in sugarcane-based ethanol production in the country is likely due to several government measures aimed at diversifying the sector, it said.

Sugar crop-based ethanol production will continue to shape sugar markets, the report said. During the last decade, 81% of the world's sugar crops were used to produce sugar but this share is expected to decline to 77% by 2034. 

In the major sugarcane-producing countries such as Brazil and India, support for biofuel production will influence the balance between the main uses of sugarcane, sugar or ethanol, especially since factories often have the built-in option to switch from one to the other. By 2034, Brazil and India are expected to account for 75% and 21% of the world's sugarcane-based ethanol production, respectively, the report said.

Though the output of sugar in India is expected to rise by 8.7 million tonnes by 2034, the growth rate of sugar production is likely to be lower than in the past decade due to a higher diversion for ethanol, the report said.

Global sugar production is expected to grow to 205 million tonnes by 2034, 63% of which will come from Asia and 24% from South America, the report said. Brazil and India will remain the main sugarcane producers, accounting for 37% and 23% of the world's sugarcane output, respectively, and 24% and 19% of global sugar production, respectively.

The growth in sugarcane production in India is projected to stem mostly from higher crop yields, as the area is not expected to expand, given competition from other agricultural crops, the report said. The Indian government's support measures play a crucial role in sustaining sugarcane production, it said. These measures include setting fair and remunerative prices to ensure farmers receive adequate compensation, providing financial assistance for the renovation of existing facilities, and supporting the development of improved sugarcane varieties, it said.  End

Reported by Shreya Shetty

Edited by Akul Nishant Akhoury

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