India to tackle sugar surplus with higher exports, ethanol diversion

NEW DELHI, Dec 18 (Reuters): India aims to shield sugarcane farmers from income losses by managing surplus supplies through exports and diverting more sugar for ethanol production, a senior government official said on Thursday.

Higher exports from the world's second-largest sugar producer could pressure benchmark New York and London futures , , which are hovering near five-year lows.

"The surplus is going to hurt the farmers, which we cannot afford to do. So, in their interest, and also in the interest of all the stakeholders, you need to ensure that the surplus stocks are contained," India's food secretary Sanjeev Chopra told reporters.

The government will try to contain the sugar surplus through all possible measures, he said.

India's sugar production in the 2025/26 marketing year, which began on October 1, is projected to rise 18 per cent to 30.9 million metric tons, even after diverting 3.4 million tons for ethanol production, Chopra said.