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The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) has requested ₹15,000-20,000 crore for advanced biofuel initiatives, including second-generation ethanol and sustainable aviation fuel, amid challenges in the sugar sector marked by surplus production and pricing pressures. With sugar output at 34.3 million tonnes and lower-than-expected ethanol diversion, ISMA is advocating for GST rationalization on flex-fuel vehicles and revisions in sugar pricing to stabilize the industry. The government has allowed exports of 15 lakh tonnes of sugar for the season, but demand growth is projected to remain modest at 1-1.5% annually.