India’s Sugar Industry

  • Global Position: India is the world’s second-largest sugarcane producer.
  • Livelihoods: The sugarcane sector supports nearly 5 crore farmers and around 5 lakh workers in sugar factories and allied industries.
  • Top Producing States: Uttar Pradesh and Maharashtra.
  • Sugar Exports Major Destinations: Sri Lanka, West Asia and East Africa.

Sugar-Ethanol Linkage

  • Ethanol blending with petrol helps reduce fossil-fuel dependence, strengthen energy security and lower greenhouse-gas emissions.
  • Sugar diverted to ethanol declined from around 12% in 2022-23 to around 9% in 2025-26.
  • Nearly three-fourths of India’s ethanol production now comes from grains, particularly maize.

Why Ethanol Matters?

  • Annual sugar production: 300-340 lakh MT
  • Domestic consumption: 280-290 lakh MT
  • Diversion of ....
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Fact Sheet