India frets about fuel, chemicals war over ethanol supply

In India, sugar mills are pushing for the government to set up ethanol pricing policies that would help ensure the needed investment in local production. The policy set up in August 2010 sets ethanol mill gate prices at INR27 per liter but rectified spirit sells at INR34 and import parity for ethanol is INR40.

The government is concerned about competition between the fuel and chemical sectors for the country’s limited ethanol production.