The Indian sugar industry is advocating for a cap on sugar exports at 1 million tonnes to facilitate the diversion of sugar for ethanol production. This initiative arises as Indian sugar struggles to compete internationally, priced at over $450 per tonne compared to lower global rates. The push for increased ethanol blending, potentially up to 27%, is driven by the need to address rising petroleum prices influenced by the ongoing conflict in West Asia. Currently, India's ethanol production capacity stands at nearly 20 billion litres, yet only 10-11 billion litres have been tendered for blending. The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has approached the Prime Minister’s Office to expedite a roadmap for increasing ethanol blending, emphasizing the economic and strategic necessity of enhancing domestic biofuel usage. The government is also concerned about accumulating sugarcane dues, which have reached ₹16,918 crore (approximately $2.03 billion USD) as of March 2025.