Sugarcane Sowing Rises as Ethanol Push Reshapes Crop Choices in India

Farmers in India are increasingly allocating land to sugarcane despite deficient rainfall in several regions during the current sowing season, according to a CNBC TV18 report. The shift comes amid government efforts to expand ethanol production and reduce dependence on imported crude oil.

Agriculture ministry data shows sugarcane acreage has increased even as the area under several food crops has declined. The trend highlights changing crop preferences driven by policy incentives and market economics.

Sugarcane Acreage Expands Despite Rainfall Deficit

According to agriculture ministry data, the area under sugarcane cultivation has increased by 1.5% during the ongoing season. This growth comes in a year when the El Niño effect has contributed to weak monsoon conditions across parts of the country.

Some regions of Maharashtra and Karnataka have recorded rainfall deficits exceeding 50%, raising concerns about water availability. Despite these challenges, farmers have continued expanding sugarcane cultivation, a crop known for its high water requirements.

Ethanol Blending Policy Encourages Sugarcane Cultivation

The government's ethanol blending programme has emerged as a key factor influencing crop choices. Ethanol production from sugarcane provides an additional demand source for cane growers and supports the country's efforts to reduce crude oil imports.

In May 2026, the government fixed the minimum cane procurement price at ₹365 per quintal, effective from October 2026. This price is more than double the estimated production cost of ₹182 per quintal, creating a strong incentive for farmers to grow sugarcane.

Rice, Pulses and Maize Sowing Areas Decline

While sugarcane acreage has risen, several major crops have witnessed a reduction in sowing area. The total area under rice cultivation has fallen by 8.6%, while the acreage of key pulses has declined by nearly 30%.

Maize, which contributes more than half of India's ethanol production, has also recorded a 19.5% decline in sowing during the current season. However, government data shows that overall maize cultivation has expanded significantly over the longer term, increasing from 96.3 lakh hectares in FY17 to 144 lakh hectares in FY26.

Impact on Food Supplies and Inflation Outlook

The decline in pulse cultivation could have implications for domestic food supplies and imports. India imported 6 million tonnes of pulses worth $3.6 billion in FY26, according to data from the Agricultural and Processed Food Products Export Development Authority.

Lower domestic production may increase reliance on imports and place upward pressure on food prices. Food inflation accelerated to 5.3% in June 2026 from 4.8% in the previous month, although Crisil Intelligence noted on July 14, 2026, that duty-free imports of tur permitted until March 2027 could help offset some supply shortages.

Read More: India Targets Major Coal Gasification Expansion.

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Conclusion

India's crop sowing pattern this season reflects the influence of policy incentives and changing market opportunities. Sugarcane cultivation has expanded despite weak monsoon conditions and concerns over water usage.

At the same time, acreage under rice, pulses and maize has declined, highlighting a shift away from some food crops. The developments underline the balancing act between supporting ethanol production, managing agricultural resources and maintaining food supply stability.

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