Ethanol shortage in India? Proposal to cap blending at 400 million liters

In India, the fight between ethanol for fuel and ethanol for the chemical industry has continued with a federal expert group calling for a 400 million liter cap put on blending. Already the government has required national oil companies to source 1 billion liters of ethanol in order to ensure a nationwide blending of 5% by mid-2011, so this group’s new report could put a spanner in the works. The country’s agriculture minister has reportedly sought advice from the Prime Minister on how to resolve the issue.

More on the story.