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The Indian government has lifted all quantitative restrictions on ethanol production from sugarcane juice syrup and molasses for the 2025-26 supply year, commencing November 1. This policy shift aims to bolster sugar mills, enhance renewable energy production, and achieve biofuel blending targets.

Improved rainfall has increased sugarcane cultivation, raising expectations for higher supplies. While production will be unrestricted, the government will periodically review ethanol diversion to maintain domestic sugar availability. Leading sugar producers have expanded their ethanol capacities to meet rising demand.