- The Indian government’s ethanol mandate means cane mills in Uttar Pradesh, Maharashtra and Karnataka should produce 3.3 billion litres of ethanol this season.
- So far, it looks as though they’re only going to manage 2.6 billion litres.
- Uttar Pradesh is pushing on at a good pace, but Maharashtra and Karnataka both have room for improvement as they aren’t currently making full use for their ethanol production capacity.
- To stay on track, the mills must collectively divert 1.2m tonnes of sugar towards ethanol.
- We therefore think India will produce 31.5m tonnes of sugar this season, down 1m tonnes from our initial estimate.
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