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HomeArticlesIndia's ethanol plan could drive a sugar bull market

India’s ethanol plan could drive a sugar bull market

By-(MENAFN – Trend News Agency )

The Indian government’s plan to gradually increase ethanol blending in gasoline, as a way to cut pollution and reduce its oil import bill, could be the largest change in the global sugar market since Europe’s sugar reform, and possibly drive a bull market, Trend reports citing Reuters.

According to a report released on Monday by food trader and supply chain services provider Czarnikow Group, India’s ethanol program will lead the government to end sugar export subsidies and erase exportable sugar volumes from the country, currently the second-largest producer after Brazil.

Czarnikow’s chief analyst Stephen Geldart said in the report that India’s plan to push for a 20% ethanol blend to gasoline as soon as 2023, compared to only around 5% currently, will lead to the production of 6 billion liters of ethanol from sugar cane juice and molasses, “reducing local sugar production by more than 6 million tonnes”.

“By 2025, India will swing from making at most 33 million tonnes of sugar a year to 27 million tonnes. With consumption today at around 25 million tonnes and likely to grow in the future, India will no longer be a major surplus sugar producer and exporter,” the analyst said.



(The above news was originally posted on menafn.com_

Aabkari Times Editorial Teamhttps://aabkaritimes.com
Aabkari Times is a monthly news magazine on Liquor, Excise and Alcohol allied industry; being published since 2009 by the expertise of retired excise dept. associates and alco-bev industry professionals as our editorial team. Our magazine contains different new alco-bev strategic and new brand launch articles as well as news on recent govt. policies, trends on alcohol industry and other important data relevant to the distilleries and industry at the mass.

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