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The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) has requested a budgetary allocation of ₹15,000-20,000 crore for advanced biofuel projects, including second-generation ethanol and sustainable aviation fuel (SAF). The sugar industry faces surplus production and pricing pressures, with sugar output estimated at 34.3 million tonnes.

Ethanol diversion is significantly lower than expected, affecting sugar stocks and prices. ISMA has called for GST rationalization on flex-fuel vehicles, revisions in minimum support prices for sugar, and adjustments in ethanol pricing to stabilize the industry and support clean energy goals. Additionally, the government has permitted sugar exports of 15 lakh tonnes for the season, but demand growth remains low, with expectations of only 1-1.5% annually.