Continuation of unfavourable regulations with respect to feedstock use for the production of ethanol presents the major downside risk for the industry.
With no real progress on getting the minimum price of sugar hiked and the diminishing appeal of exports due to moderating global prices, the Indian sugar industry is lobbying for more remunerative prices of ethanol. The move is aimed at offsetting the erosion in profit margins caused by increasing raw material costs, amidst tighter sugar
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