The Indian government’s decision to increase the ethanol blend in gasoline to 20% by 2026 could create opportunities for Brazil in additional sugar production and in the export of Brazilian ethanol to India. As the largest producer and exporter of sugar in the world, Brazilian production would be in greater demand worldwide with the reduction in the supply of sugar from the second largest producer, India. This is because the country would have to direct a larger portion of sugarcane to increase ethanol production and guarantee the mix defined by the government. Domestic ethanol production in India would not be able to grow quickly enough to meet the 20% requirement, which would open up the possibility of growth in Brazilian ethanol exports until Indian production increases.
Sourc: RPA News