The reduced sugarcane yield is straining farmers' incomes and increasing food inflation, particularly during the festive season when sugar demand peaks. Rising prices have sparked protests, and the government has warned traders against hoarding. The situation also poses risks to India's ethanol production goals, which rely heavily on sugarcane. If El Niño persists into next year, the likelihood of extreme weather events such as droughts and floods could further disrupt agricultural supply chains, affecting not just sugarcane but other key crops as well.