InvestorQ : Does India have enough ethanol capacity to increase production in coming years?
Katherine Gonsalves made post

Does India have enough ethanol capacity to increase production in coming years?

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rhea Babu answered.
6 months ago
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Not exactly and that is the big challenge. But the opportunity is just too big to let go. For instance, India produces 17% of global sugar but just 2% of global ethanol. In the past, sugar was always a very politically sensitive subject. However, with Brazil cutting sugar production due to supply chain constraints and high sugar prices globally, India can afford to play the ethanol game in a big way. But what about capacities.

In order to blend 20% ethanol by 2023, India must expand ethanol capacity from 4.25 billion LPD to 10.50 billion LPD by 2023. That is a very big challenge. While there are capacities coming up from Balrampur, Bajaj and Renuka, it could take longer than 2023. Till then, Indian government just needs to keep the duty structure favourable. Rest will follow.

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