Indian oil marketing companies not likely to resist low oil prices despite ethanol mandate

In India, the Hindu Line newspaper reports that despite government policy to blend 10% ethanol, with oil prices at $30 per barrel oil marketing companies are likely to forego additional ethanol blending. Blending reached 5% last season and was expected to reach similar levels this year while sugar mills invest in order to boost production to achieve 10%, but with low oil prices that blending level may only reach 4% this season. Ongoing droughts and floods in key cane-growing areas have also dampened the ethanol volumes available.