Sugar output may fall marginally as govt hikes procurement price of ethanol

Sugar output likely to drop marginally if mills make ethanol directly from B-molasses

India's sugar production in the coming 2018-19 season, which starts next month, is likely to be 0.7-0.8 million tonnes less than its estimated total, because of government's recent decision to incentivise the production of ethanol from intermediary molasses and sugarcane juice.

Though the drop compared to the estimated 35.5 million tonnes of sugar production looks miniscule, industry players say this is just the beginning and more quantities would get diverted over the years as mills add new production capacities.

However, the figure might go up if more mills start producing ethanol as the Union cabinet, in a meeting on Wednesday, raised