Care Ratings: Ethanol Capacities, Supplies And Targets - October 2020
India’s ethanol production capacity has grown at a CAGR of 17.8%—from 222 crore litre in 2015-16 to 427 crore litre in 2019-20.
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Sugar closing stocks are estimated to have averaged at a high of about 12 million tonnes during the past three sugar seasons 2017-2020.
Closing stock was at its peak at 14.6 million tonne during sugar season 2018-19 and thus the industry started the sugar season 2019-20 with an-all time high opening stock.
Higher YoY sugar production during sugar season 2017-18 (60.1%) and sugar season 2018-19 (2.1%) and minimum sugar exports in sugar season 2017-18 resulted in huge carryover stocks in sugar season 2019-20.
To reduce sugar glut and to increase diversion of sugar/sugarcane towards ethanol to attain the Ethanol Blended Petrol Programme target and to provide support to the sugar industry that has high sugarcane arrears, the ethanol production capacity in India has almost doubled over a period of five years with capacity increasing substantially from Ethanol Supply Year (ESY) December 2017-November 2018 onwards.
The capacity has grown at a strong compound annual growth rate of 17.8% from 222 crore litre in ESY 2015-16 to 427 crore litre in ESY 2019-20
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