Sugar will continue to be diverted for ethanol, says food secretary: Media report

India is aiming for a 20% ethanol blending in fuel, and according to Food Secretary Sanjeev Chopra speaking to CNBC TV18, sugarcane will continue to be diverted for ethanol production. He mentioned that as the country approaches the 20% target, 50% of ethanol will be sourced from sugarcane, with the remaining 50% coming from maize and damaged foodgrains.

According to the news report published in CNBCTV 18, regarding the 5.5% year-on-year inflation in sugar, he clarified that there are no supply side shocks and sugarcane farmers are receiving their payments promptly. He also described the diversion of an additional eight LMT of sugarcane for ethanol as positive news for the industry, up from the previous 17 LMT diversion.

Recently, Bloomberg reported that the government may divert more sugar to produce ethanol. As per report, government is considering a proposal that will permit mills to use extra 8 LMT of sugar for ethanol this year due to the crop being higher than earlier prediction.


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