In India, The Economic Times reported that India, the world’s second-largest sugar producer and a major exporter in recent years, will likely have a smaller role in the sugar export market going forward as its government-led ethanol program continues to expand, according to a recent report by research firm BMI, a unit of Fitch Solutions.
The report said that India’s pursuit of increased ethanol blending in gasoline, as a way to cut the oil products’ import bill and reduce carbon emissions, will continue to support global sugar prices.
The report noted that there is currently a fast development of additional capacity to produce ethanol in the country, where biofuel is made mainly from sugarcane.
As more ethanol plants start production, an increasing portion of India’s sugarcane crop will be used to make the fuel, limiting the amount of sugar that will be produced, the report added.
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