India OKs production of ethanol directly from sugar; E5 mandate goes into effect, E10 mandate for 2008 confirmed

In India, the government yesterday approved the production of ethanol directly from sugar and made E5 mandatory from this month. E10 is mandated as of October 2008. As a result of the government’s actions yesterday, stock prices of  Indian sugar companies rose by up to 12 percent yesterday.

Last week, 10 sugar-producing states in India  agreed to a framework for a national E10 mandate. India’s sugar crop this year is expected to exceed 29 million metric tons. With domestic consumption at 19 million tons and exports at 1.5 million tons, the country is turning to ethanol production to avoid a catastrophic sugar glut.

India announced an E10 mandate that would take effect in October 2008. The Indian Minister of Agriculture had called a meeting of sugar-producing states early this week to establish a framework for cooperation.

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