Sugar output in India may be lower than the projected production of 30.2 million tonnes as many sugar mills are focusing on ethanol production with the help of the Central government’s package.
According to the news report published in Indianexpress.com, an Indian Sugar Mills Association (ISMA) member said, “The installed ethanol capacity of 3.5 billion litres per annum can achieve targeted blending with petrol of up to 7.5-8 per cent this fiscal. But many of the country’s sugar mills have signed agreements with oil marketing companies for ethanol supplies aggregating 7.1 billion litres in FY21. This has led to a fear of lower than expected sugar output this season.”
The sugar mills from the three major sugar-producing states namely Maharashtra, Karnataka and Uttar Pradesh are expected to divert more sugar for the ethanol production in the ongoing season as compared to the previous season.