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  • The Indian Government has given incentives to increase ethanol production.
  • This is in an effort to reduce the quantity of sugar produced domestically.
  • However, ethanol production is unlikely to drastically reduce sugar production in the near future, despite aiming for a blend rate of 10% and gasoline demand increasing.
  • We expect only 700k tonnes of potential sugar to be diverted to ethanol production this season, and only slightly more in 2021.

Indian Sugar Loss to Ethanol

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