India. Reaching 20% ethanol in fuel could reduce sugar production

The Indian government said that in February, the level of ethanol in fuel reached 19.68%, which is almost in line with the target of reaching 20% ethanol by the end of 2025.

This is reported by the Press Trust of India.

The increase in ethanol production from sugar cane and the decline in sugar cane harvest in the current 2024/25 season has affected the projected decline in sugar in the country. The National Federation of Cooperative Sugar Mills of India (NFCSF) has reduced the forecast estimate of sugar production in India in the current season 2024/25 to 25.9 million tons, compared to the previous 26.5 million tons, which is also lower than the level of the previous season at 31.9 million tons.

In this regard, in order to avoid a possible increase in sugar prices in the domestic market, the Indian government may reconsider its decision to reduce the previously allowed volume of sugar exports in the amount of 1 million tons in the current season or reduce the use of sugar for ethanol production, reducing the share of ethanol in fuel.

Tags: sugar, India