India: Biofuels Annual

  |   Attaché Report (GAIN)

India’s average ethanol blending rate in gasoline is expected to reach 5.2 percent, up from 4.5 percent last year. This increase is mostly due to a smaller gasoline-ethanol fuel pool resulting from COVID-19 lockdown measures. Relatively weak domestic demand for sugar and stronger price incentives to divert B-heavy molasses and sugarcane juice for ethanol production will help oil-marketing companies (OMC) procure 1.95 billion liters of fuel ethanol, up from 1.9 billion in 2019. With increased industrial and medical grade ethanol imports during the first quarter, 2020 ethanol imports are estimated at a record 870 million liters, nearly all from the United States. The biodiesel market remains nearly non-existent; plans that were set forth in 2018 to support market development by tapping into India’s large supply of used cooking oil (UCO) remain a work in progress.

India: Biofuels Annual

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