El Niño-hit crops threaten India's 20 per cent ethanol target, forcing rethink of Modi's fuel ambitions
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓India’s goal to blend 20 per cent ethanol in petrol faces a setback as poor monsoon rains hit sugarcane and corn crops.
- ✓Sood said, "India is the world's most populous country, so food has to take priority over fuel." This shift forces New Delhi to rethink its energy plans.
Story at a Glance
- Category
- MARKET
- Reported By
- The Telegraph
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
New Delhi's ample rice stockpiles offer an alternative to sugar and corn, but one that would be expensive for the government, which sells the grain to ethanol producers at roughly half the price it pays to buy and store it
India's drive to replace imported oil with home-grown biofuel faces a setback as the lowest monsoon rainfall in more than a decade hits corn and sugarcane crops, forcing New Delhi to prioritise food security over ethanol production.
The proportion of ethanol in Indian petrol is poised to fall below the official 20% target in the supply year that began this month, industry insiders say, reversing gains made after the government achieved the milestone some five years ahead of schedule.
Unlock the Full Story with ArthNow Premium
To continue reading this complete financial story and in-depth market context, upgrade to ArthNow Premium. Enjoy unlimited access across Web and Mobile.
The Telegraph
Read the full, original unfiltered story directly on the publisher's portal.