India may divert surplus sugar exports to green fuel programme – report

India, the world’s second-largest sugar producer, is likely to increasingly divert its surplus output away from exports towards domestic supply of green fuels, according to Phillip Capital.  While an export subsidy has helped domestic sugar mills to ship out the production that is not consumed at home, the government has said that the policy support […]

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Sugar production in Uttar Pradesh likely fall by 20%, thanks to ethanol diversion

Sugar production in Uttar Pradesh, the country’s largest sugar producing state in 2019-20 season, is likely to fall by around 20 per cent year-on-year to around 100 lakh tonnes in the October 2020-September 2021 season as against 126 lakh tonnes in the last season. The dip in production is primarily due to diversion into ethanol […]

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Logistics nightmare scuttles ethanol blending programme; targets likely to fall short


Failing to create adequate tankage for ethanol supplied by sugar producing distilleries, oil marketing companies (OMCs) have started reallocating contracted quantities from several depots, which the distilleries had competed to obtain, to faraway depots in other states. This takes several days, resulting in huge financial losses to the distilleries. In a series of letters exchanged […]

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India notifies modified scheme on ethanol production to assist distilleries


The Indian government notified a “modified” scheme to provide financial assistance to distilleries producing first-generation ethanol from feedstocks, including cereals. The assistance will be given for capacity expansion, setting up of new ethanol distilleries or converting molasses-based distilleries to dual feedstock. In a statement, the government said sugar mills, distilleries or entrepreneurs are required to submit an application in a prescribed […]

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India’s food ministry approves Rs 12,500 crore loan to 185 sugar mills to set up ethanol units


India’s Food Ministry has given in-principle approval to 185 sugar mills and standalone distilleries to avail Rs 12,500 crore of loans to add capacity up to about 468 crore litres of ethanol per annum as part of its efforts to achieve 20 per cent blending with petrol. The move is aimed at boosting ethanol blending […]

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