India faces spiraling deficit from rising oil prices; ethanol production still lags

In India, the Additional Secretary, Ministry of Petroleum and Natural Gas projected that $90 oil would lead to a trade deficit of $26 billion.

Meeting the crisis that will come from the spiraling cost of oil is causing major challenges in India.

Earlier this month, the South Indian Sugar Mills Association said that of 180 sugar mills who belonged to the association, only 18-20 have the capability at this time to produce ethanol.

The association’s chief told the Hindu Business Line that “The cooperative sector is beset with financial crunch to upgrade their facilities in order to produce ethanol.”

The industry is struggling to establish an ethanol capacity to reduce India’s massive 12 million ton  excess capacity of sugar, meet the proposed national E10 mandate which goes into effect in October 2008.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Rising sugar prices projected as credit crunch hits Brazilian ethanol capacity development

In Brazil, weaker oil prices and the credit crunch have caused delays in ethanol project finance, which have combined with strong ethanol demand to increase the chances for rising sugar prices in 2009...

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 a...

$26 million agro-energy complex planned for India; sugar for ethanol and power in view

In India, Dollex Industries and Madhya Pradesh government have signed an agreement for a $26 million investment in an integrated agro-energy complex for sugar processing, and ethanol and power generat...

Daily Biofuels Summary for October 31: Fuel shortages break out in China as US, Brazil set ethanol production records

Top Story: In China, fuel riots occurred because of shortages. The shortages are affecting Shanghai, the southeast coastal provinces, and are spreading to the interior. Diesel is fixed-priced at $2...

US oil imports up 11 percent in June; now 80 percent of trade deficit; ethanol investment $4.7 billion

The US Census Bureau released a report that the US spent $45 billion on oil imports in June, up from $40 billion in May. By contrast, investment in ethanol production was $4.47 billion, according to a...

China may become net food importer; more price rises for grains expected

A report from India points to rising demand from China as the source of rising world food prices. China, previously a food exporter, may become a net food importer this year....