India’s ethanol blending programme to benefit Brazilian sugar producers

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Sugar industry in Brazil likely to get benefitted from India’s decision to boost ethanol blending with petrol as this will help in reducing the country’s sugar output as well as export and shift the burden of supplying sugar to the global market on Brazil’s shoulders.

Prime Minister Narendra Modi on June 5, 2021 released the report of the expert committee on ‘Roadmap for Ethanol Blending in India by 2025‘.
According to the report, 20 per cent of ethanol blending is within reach. It suggested specific responsibilities of union ministries, state governments and vehicle manufacturers for the production, supply and gradual rollout of 20 per cent ethanol blending in petrol by 2025.

Arnaldo Correa, director of consultancy Archer said, “This will curtail India’s sugar production and exports, a net positive for Brazil in the medium term.”

Sao Martinho’s chief financial officer Felipe Vicchiato said that this positive move will not show effects in next year but in 24 months.

Global demand for sugar is likely to grow by 1 per cent per year for next five years and with India reducing sugar export, Brazil will benefit from it, Correa said.

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