Groww Mutual Fund has filed for India’s inaugural sugar and ethanol exchange-traded fund, reflecting a growing investor focus on the biofuel sector’s distinct theme, driven by government policies and industry realignment.
Groww Mutual Fund has filed draft papers with India’s markets regulator for what appears to be the country’s first exchange-traded fund focused on sugar and ethanol, a sign that investors are beginning to treat the sector as a distinct theme rather than a conventional commodity play. The filing, dated September 18, 2026, has been listed by the Securities and Exchange Board of India under mutual fund drafts.
The proposed Groww Nifty Sugar & Ethanol ETF would be an open-ended scheme tracking the Nifty Sugar & Ethanol Index, which is made up of 15 companies in the fast-moving consumer goods sector directly involved in sugar or ethanol production. According to SEBI’s filing and the draft document reviewed by ChiniMandi, Groww has already started informing distributors about the planned fund.
The launch comes as India’s ethanol push continues to reshape the economics of the sugar industry. Government policy has encouraged mills to diversify income through ethanol, helping to reduce dependence on sugar prices alone and drawing greater attention from market participants to companies tied to the country’s biofuel build-out. News9 Live reported that the index fund would be the first of its kind in India, while SEBI’s draft listing confirms the filing’s date and structure.
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