Edited excerpts:
What do you think is the real reason for a spike in sugar stocks, ethanol and this temporary supply-demand imbalance?
There are multiple factors. There is Brazil which is not producing enough. India has become the largest producer of sugar even at 32 million tonnes while Brazil used to produce something like 36 million. So, Brazil production going down by about 5 to 6 million tonnes means the world market is going to be more balanced than being surplus.
Would higher ethanol blending be a good solution to resolve some of the financial issues that the sector is facing?
I do not think it will really backfire because we have almost 10 million tonne stock at this point of time and export of 2 million tonnes is not really going to create shortage. I do not think the government should fear higher sugar prices coming because of this policy.
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