Archive · 21 Sep 2026
Sugar Prices, Ethanol Production and India’s Growing Water Pressure
Sugar prices have gone up, partly because sugar production naturally changes from year to year.
India is also encouraging ethanol production to reduce the need to import crude oil.
Ethanol can be made from maize, rice, or sugarcane products.
Maize provides about 45% of the ethanol, while rice provides about 20–25%.
The remaining ethanol comes from sugar-based materials.
One tonne of maize produces more ethanol than one tonne of rice or sugarcane.
Because sugarcane is also used for ethanol, people are asking whether this could affect food supplies.
The article also raises concerns about growing pressure on India’s water resources.
Sugar prices have risen as part of the normal cycle of changing sugar output.
India is promoting ethanol production to reduce crude oil imports.
Ethanol is made from maize, rice and sugarcane-derived products.
About 45% of ethanol comes from maize, 20–25% from rice, and the rest from sugar-based sources.
Maize produces the most ethanol per tonne, while sugarcane yields less and raises broader concerns about crop supplies and water pressure.
- Who
- India’s sugar and ethanol sectors.
- What
- Sugar prices have risen while ethanol production is being expanded, prompting questions about crop supplies and water pressure.
- Where
- India.
- Why
- Ethanol production is being promoted to reduce crude oil imports, while sugar prices are influenced by changes in sugar output.
- Sugar prices
- Prices have risen as part of the normal cycle linked to changing sugar output.
- Ethanol sources
- Ethanol is produced from maize, rice and sugarcane-derived products.
- Maize share
- Around 45% of ethanol comes from maize.
- Rice share
- Around 20–25% of ethanol comes from rice.
- Sugar-based share
- The balance of ethanol production comes from sugar-based sources.
- Yield from maize
- One tonne of maize produces about 380–400 litres of ethanol.
- Yield from sugarcane
- One tonne of sugarcane produces about 220–280 litres of ethanol.