In Ukraine, UkrAgroConsult reported that India’s sugar industry, which saw a significant boost from the ethanol blending program, is facing new challenges due to a policy shift.
In recent years, the industry has invested heavily in creating new ethanol production capacities and increasing supplies to meet the growing demand for ethanol in the blending program. However, a change in feedstock priorities has left the sugar industry at risk of losing demand for its ethanol output, according to the report.
According to industry representatives, the balance of feedstock for ethanol production has tilted in favor of grain, reducing the share of molasses. While the sugar industry once supplied around 70% of ethanol, this has dropped to about 30%, with the gap filled by grain-based distilleries. They noted that this shift negatively impacts ethanol revenues, timely payments to farmers and the optimal utilization of the sugar industry’s production capacities.
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Category: Food & Agriculture
