Fitch Solutions said on Tuesday that India’s ethanol consumption will increase over the next few years, driven primarily by the government’s desire to support the sugar sector by boosting ethanol production but also because of the recovery in road travel following Covid-19 disruptions.
At the same time, demand for industrial ethanol is also likely to rise in coming years in tandem with the expansion of its domestic chemical and healthcare sectors.
The government is targeting a motor fuel blending rate of E10 (10:90 ethanol:gasoline) by 2022 and brought forward its ethanol E20 target to 2023 (from 2025) in June earlier this year.
