Note: This Explainer only relates to India’s sugarcane juice and molasses-based ethanol production, as this has an impact on the country’s sugar diversion.
India is aiming to achieve a 20% blend of ethanol in gasoline by 2025, up from around 5% in 2020.
Much of this ethanol will be made from cane-derived sucrose, and so will reduce India’s sugar production.
The government has introduced various incentives to the cane milling and distillation sector to make this happen.
Regardless, it’s an ambitious target; pre-COVID Indian gasoline consumption was growing at around 8% per year.
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This Czapp Explainer was Published on the 13th April 2021.
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