According to a report by BMI, India’s government-led ethanol program is expected to have a smaller role in the global sugar export market. The program aims to increase ethanol blending in gasoline, which will help reduce the country’s oil import bill and decrease carbon emissions. The report highlights the fast development of additional ethanol production capacity in India, where ethanol is mainly produced from sugarcane. As more ethanol plants start production, a larger portion of India’s sugarcane crop will be used for fuel production, limiting the availability of sugar. Currently, India’s ethanol blending has reached 11.5%, and the target set by the government is 20% by 2025. However, the report doubts the country’s ability to achieve this target. Despite the potential challenges, the ethanol program will cap the exports of feedstocks used in ethanol production. The report also mentions Indonesia’s plans to implement an ethanol blending program, starting with a 5% blending rate and aiming to reach 10% by 2030. To achieve this target, Indonesia would need to significantly increase sugarcane planting and might need to import ethanol. However, as Indonesia is not a regular exporter of sugar, the program is not expected to impact global sugar prices significantly.