Warnings emerge on reliabililty of Indian ethanol mandate: India mandated in 2002, backed away in 2004

In India, the treasurer of JalaSpandana warned that the government of India had mandated ethanol production to support the sugar industry in 2002, but backed away from its commitment in 2004. The 15 million gallons of ethanol produced by Renuka Sugars, Godavari Sugars, Ugar Sugars, Dodhaganga Krishna Cooperative Sugar Factory and Shamanur Sugars were never used.

The E10 mandate proposed for October 2008 has been championed by the Agricultural ministry as a means of handling the nation’s severe sugar overproduction. India is projected to have a surplus of 11.5 million tonnes, based on a projected 33.15 million tonnes harvest this year, which would be a world record for national sugar production. Recently, 10 sugar-producing states have 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.

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