India's ban may curb sugar price increases; sugar prices have already surged this year.

The Indian government has ordered state-owned fuel retailers to stop purchasing ethanol produced from sugar and major sugarcane raw materials, with the ban taking effect on November 1, the start of the new supply year. The move is aimed at easing pressure from sugarcane production cuts and soaring sugar prices caused by a strong El Nio phenomenon. This summer, drought hit sugarcane yields, and global sugar prices rose sharply. India, as the world's second-largest sugar producer and largest consumer, is striving to increase sugar supplies while advancing its ethanol policy to reduce dependence on oil. Previously, India had considered restricting the production of ethanol from sugarcane to increase sugar supplies.