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India faces spiraling deficit from rising oil prices; ethanol production still lags

October 31, 2007

In India, the Additional Secretary, Ministry of Petroleum and Natural Gas projected that $90 oil would lead to a trade deficit of $26 billion.

Meeting the crisis that will come from the spiraling cost of oil is causing major challenges in India.

Earlier this month, the South Indian Sugar Mills Association said that of 180 sugar mills who belonged to the association, only 18-20 have the capability at this time to produce ethanol.

The association’s chief told the Hindu Business Line that “The cooperative sector is beset with financial crunch to upgrade their facilities in order to produce ethanol.”

The industry is struggling to establish an ethanol capacity to reduce India’s massive 12 million ton  excess capacity of sugar, meet the proposed national E10 mandate which goes into effect in October 2008.

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    Written by Jim Lane · Filed Under International, Policy, Research 

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