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  • Writer's pictureTritech

Demand for ethanol not to impact ‘sugar’ supply

Indian sugar millers are confident that demand for ethanol will not impact the sugar availability in the market as the country’s problem is not shortage but that of surplus and not knowing what to do with it.

India is likely to continue producing more even after diversion and so it will continue to struggle with surplus stock unless there is some major drought, which could then affect cane production, the sugar industry claims. Domestic requirement of sugar during the current 2021-22 (October-September) season is estimated to be close to 265 lakh tonne.

The country’s opening stock as on October 1, 2021 was at around 82 lakh tonne, as per the estimates put out by Indian Sugar Mills Association (ISMA). The total output in the current season is estimated to be close to 315 lakh tonne, which is higher than the first advance estimates put out by ISMA in October last year at around 305 lakh tonne. So there is extra availability to the tune of close to 130 lakh tonne. In fact, of this, some amount would be exported, the industry claims.


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