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Drought to keep India from reaching E5 blending mandate

In India, drought impacts in major sugarcane areas such as Maharashtra will reduce ethanol production this year due to a lack of molasses for feedstock, making it unlikely that the country will achieve its blending mandate yet again.

For the past four years since the E5 policy was implemented, oil marketing companies have failed to achieve the volumes set for blending. In 2015/16, OMCs achieved 4.15% blending. The tender floated for blending this year wouldn’t even achieve 3%.

Biofuel Digest

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