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Informist, Friday, Dec. 6, 2024

NEW DELHI – India's ethanol imports from the US rose 200% on year to 564.9 million litres as of Jan-Aug in the calendar year 2024, from 188.3 million litres last year, the International Sugar Organization said in its November market report. India is the third most popular destination for US ethanol exports, after the UK, and Colombia.

In the first eight months of 2024, US ethanol exports increased due to blending mandates in destination countries and lower US ethanol prices, according to the Energy Information Administration. "Total US exports for the year so far have set a new record at 5.79 billion litres, substantially exceeding last year's 4.28 billion litres," the global sugar body said in the report.

India did not achieve the 15% ethanol blending target in 2023-24 (Nov-Oct) amid reduced domestic ethanol supply in the country. In 2023-24 (Nov-Oct), India achieved 14.6% ethanol blending with petrol, according to the Ministry of Petroleum and Natural Gas. 

In the current ethanol supply year, which started in November, Indian state oil companies have tendered more ethanol supply from grain distillers than sugar distillers, the global sugar body said. But, India's Grain Ethanol Manufacturers Association has raised concerns about insufficient ethanol offtake by oil companies, it added. 

Meanwhile, the US produced a record 178 million litres of ethanol per day in the week to Nov. 22, taking the total ethanol output to 3.8 billion litres, the report cited the Energy Information Administration data. Production remained robust as strong export activity has offset reduced domestic blending demand, the report said. 

SUGAR

Raw sugar prices remained in a narrow range in November for the second consecutive month at $20.44 cents per pound, down from $20.94 cents per pound, the report said. Sugar prices fell partly due to increased Brazilian hedging activity due to a weaker Brazilian real, it added. 

"Speculator activity in the raw sugar futures market was limited in terms of price movement but bearish in its positioning," the global body said. However, the key challenge in the market remains the low residual stock of centre South Brazil for the coming months, it added. 

During the first half of November, sugarcane crushing fell in centre south Brazil fell 50% on month to 16.5 million tonnes due to wet weather, especially in So Paulo state, the report said. However, mills that have elected to end crushing operations remain relatively low, pointing to a possible recovery in throughput in the latter part of November, the report added. 

In India, mills in Maharashtra delayed the commencement of crushing operations, but mills in Uttar Pradesh have started operations smoothly, the report said.  Up to Nov. 30, cane throughput stands at 33.3 million tonnes, down from 51.2 million tonnes last season, it added. In Thailand, the crushing season is set to start on Friday, the global body said.  End

Reported by Afra Abubacker

Edited by Deepshikha Bhardwaj

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