India mandates E10 ethanol blend effective October 2008
India will double its current ethanol mandate from E5 to E10, national Agriculture Minister Sharad Pawar announced today.
The measure is intended to address the rising sugar stocks in the country amidst depressed global sugar prices, as well as address India’s rising demand for fuel at a time of historically high oil prices. The Agriculture Minister also said that India will lift its ban on direct production of ethanol from sugar cane juice.
India had been facing a glut of sugar, with more than 12.1 million tonnes in store as of the end of September, or a full six months of national consumption. Fears of dumping of sugar onto global markets have depressed sugar prices around the world and caused the near-collapse of production in marginal sugar-producing areas such as Western Australia.
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