India’s 22% of sugar will be diverted to ethanol by 2034, says OECD-FAO report
Global sugar prices are projected to decline slightly through 2025–34, according to OECD-FAO, citing uncertainties like extreme weather and Brazil’s market role. India will remain the third-largest sugar exporter with an 8% share. Ethanol production from sugar in India is expected to rise from 9% to 22% by 2034.
In their medium-term projections for world sugar markets during 2025-34, OECD-FAO in a joint report has said that sugar prices are expected to decline slightly, subject to many uncertainties, including extreme weather events, Brazil’s dominance in the global market and fluctuations in the relative profitability of sugar compared to ethanol.
With regard to India, the report has said that sugarcane-based ethanol production will be supported by the government measures to diversify the sector. It also said that India will remain at third position as a sugar exporter after Brazil and Thailand, with a share of only 8 per cent in global trade.
Ethanol production uses about 9 per cent of India’s sugar production and it is expected to increase to 22 per cent by 2034, it said.
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Source : The Hindu Business line
