InvestorQ : Is it true that ethanol production could impact the food prices in India?
sara Kunju made post

Is it true that ethanol production could impact the food prices in India?

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Mary Joseph answered.
2 months ago
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Indian sugar companies are celebrating the higher sugar prices and the new ethanol blending incentives. However, with sugar output robust, government likely to end 2020-21 sugar cycle with 7 MT of closing stock . That would open the doors to more aggressive ethanol blending. However, there has been a risk of food security in some countries.

In the US corn based ethanol had to be curbed due to the impact it was making on food availability. Indian government has set 20% mandatory blending of ethanol with petrol by 2025. This opens the doors for biofuels diverting food grains. While biofuels will reduce $4 billion in crude import bill, the costs in terms of food security could be high.

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