sugar production will surely be down next year otherwise govt. would not have taken stance of no diversion when sugar production surplus expected this year is good (after stopping of ethanol).
Govt wants to meet the ethanol target through mazie - maize prices have already shot up. in a few months time they will realise that not much ethanol has been produced from maize and prices have shot up !! High maize prices will increase rice and wheat prices also.
But ethanol reduces imports and saves on forex.
Globally ethanol is mainly produced from sugarcane as it is most efficient land and water wise (based on per liter of ethanol produced). Govt. should not have stopped ethanol production - no sugar mill will set up additional capacity instead they will try to set up bio-chemicals like Dhampur sugar already has and Balrampur’s recent bio-plastic project, etc. Triveni, DBOL, Balrampur and others have cancelled their ethanol expansions. In a way it was good as bio-chemicals are more sustainable in long run and can also lead to rerating of the industry.
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