Indian government may boost ethanol price to help mills

In India, despite the government’s set price for ethanol at 60 cents per liter, higher production costs from set cane prices at the federal and state level in addition to lower production from drought has raised ex-mill prices to nearly 70 cents per liter. As a result, mills only supplied 800 million liters towards the ethanol-blending mandate against the 2.8 billion liters required. The government is considering lifting the set ethanol price to help mills, in addition to other supports such as raising the import tax on raw sugar.