No proposal to reduce ethanol production yet, say government sources: Report
India's sugar shortage. Mint could not independently verify the development.
Earlier today Bloomberg cited sources saying that India is considering curbing ethanol production adding that authorities are studying a proposal to limit the use of sugarcane juice to produce ethanol for the current season. No final decision has been made, and plans could still change, they added.
The proposal, which would help ease local sugar shortages if approved, sent futures plunging as much as 7.9% in New York on Wednesday, the biggest decline in 10 months. It would also crush any potential for India to import the sweetener.
Poor rainfall harmed sugarcane crops in India, prompting the world’s second-biggest sugar producer to extend restrictions on exports beyond Oct. 31.
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