2. Ethyl alcohol and other
spirits(2207)
Undenatured ethyl
alcohol of an alcohol
strength by volume 80%
or higher (220710)
Ethyl alcohol and other
spirits, denatured, of any
strength(220720)
Ethyl Alcohol(22072010) Spirits(22072020)
Usage:- Industrial use, Fuel for alcohol burners and camping stoves, for cosmetics and
labs, cleaning agent, sanding aid, pharmaceuticals, chemical manufacturing, Medical ,
Recreational , Solvent,
Additives:-Denatured alcohol typically contains 5% or more methanol. Other typical additives
include isopropyl alcohol, acetone, methyl ethyl ketone, methyl isobutyl ketone.
Denaturing alcohol does not chemically alter the ethanol molecule
Denatured Alcohol is of two types:-
Specially Denatured Alcohol (SDA) is alcohol to which denaturing materials have been added.
Manufacturers may use SDA in the manufacture of any product that is not intended for
consumption.
Completely Denatured Alcohol (CDA) is alcohol that has been so thoroughly denatured that the
product is utterly unfit for beverage use, and the denaturants used are very nearly inseparable
from the alcohol.
Agriculture Sugarcane Sugar Ethanol
Ethyl Alcohol and Other Spirits(HS Code 2207):-Ethyl alcohol is an important industrial chemical;
it is used as a , in the synthesis of other organic chemicals, and as an additive to
automotive gasoline . Ethyl alcohol is also the intoxicating ingredient of many alcoholic beverages
such as beer, wine, and distilled spirits.
Molecular Formula:-C2H5OH
Manufacturing Process:-
• Fermentation of carbohydrates
• Hydration of ethylene
Ethyl Alcohol Classification
Manufacturing
Introduction
3. CultivationLand Trading Processing Distribution Retailing
Food,
Feed,
Indust
rial
TradingExploration Refining Formulating Distribution Retailing
Liquid
transpo
rt fuel
Manufacturing
Trading
Technology,
Engineering,
Construction
New value chain i.e.
biofuel industry-
connecting two value
chains
Value Chain Analysis
4. Value Chain Analysis
The upstream of the
industry is the traditional
agricultural value chain,
which consists of three
stages - the land,
cultivation, and trading
and transporting of
agricultural produces.
Sources are – sugarcane,
corn, switch grass etc
The midstream consists of
ethanol manufacturers and
traders. They process the
agricultural products into
ethanol
An auxiliary stage, which
is not a stage along the
main value chain, is also
included to capture
technology providers and
other suppliers of
production inputs such as
chemicals, yeast, enzymes
and utility
Bio-ethanol value chain is created by a crossover of two value chains, i.e. the agro commodity value chain and energy
value chain
The downstream stages
are similar to the
downstream chains of
conventional transport
fuel, where ethanol is
blended and
distributed to retail fuel
stations.
5. 1609.9
2678.7
2149.9 2080.7
2213.9
2133.9
0
500
1000
1500
2000
2500
3000
2010 2011 2012 2013 2014 2015
Valuein$million
PRODUCTION VALUE (MILLION USD)
Total
-40
-20
0
20
40
60
80
2010-11 2011-12 2012-13 2013-14 2014-15
%agegrowth
Year on Year Growth (% of total market size)
Production of the commodity in India
Total Production for the year 2015 – 581 million gallons
275
2321
555
320
2202
322 935
State wise Installed Capacity (KLPD)
Bihar Uttar Pradesh Andhra Pradesh Tamil Nadu Maharashtra Gujarat Karnataka
Key Insights
• In India, ethanol can be produced only from molasses whereas, mills in Brazil
produce ethanol directly from sugarcane juice.
• India is the largest producer of sugar in the world. In terms of sugarcane
production, India and Brazil are almost equally placed.
• The annual projected growth rate in the area under sugarcane at 1.5% per
annum has doubled during the last five years.
• According to MPNG, 5% ethanol blends on an all-India basis would require
500 million litres. The current availability of molasses and alcohol would be
adequate to meet this requirement after fully meeting the requirement of the
chemical industry and potable sectors.
• State Excise and Sales Tax relief Simplification of procedures Concessions for
new ethanol production units Facilitate easy inter-state movements of
ethanol Issues relating to State GovernmentsSources:- Trade Map, Market Access Map
6. Production of the commodity in World
Total Production for the year 2015 – 25 billion gallons
-
5
10
15
20
25
30
2007 2008 2009 2010 2011 2012 2013 2014 2015
BillionGallons
Global Ethanol Production by Country/Region and
Year
Rest of World
Canada
China
Europe
Brazil
USA
0 1 2 3 4 5 6 7 8 9
RME (Biodeisel)
Wheat
US Corn
Sugar Beet
Biomass
Sugarcane
Energy Balance by Feedstock
World Fuel Ethanol
Grains
Sugar
Current world production of ethyl alcohol is 25 billion gallons and will continue to
grow strongly.
The technologies used for production are tried and tested in all parts of the world.
Demand for ethyl alcohol is virtually unlimited and cost reduction potential is huge
Trade will grow as well but pace will depend on the sugar-alcohol economics, new
investments in origins and establishment of a viable trading system (futures).
Overall outlook of ethyl alcohol production is very bright
Key Insights
Sources:- Trade Map, Market Access Map
7. Key Data
•Total Imported Value : $149,025,000
•Imported Quantity : 145,154 tons
•Growth in Value over 2011 to 2015 : 44%
•Last Year growth (2014-15) : 70%
•Tariff Imposed : 130.2% on most countries
Major Import Partners
1.7%3.9%17.2%73.9% 1.6%
0
20000
40000
60000
80000
100000
120000
2011 2012 2013 2014 2015
Variation of Imports in India over 2011-2015
USA Brazil Spain Bhutan Pakistan
Indian Ports Importing HS2207
Bombay Sea
Mundra
JNPT
Delhu ppg lcd
Kandla
Bangalore Air
70.12%
29.88%
HS 27010
HS 27011
Share of the types of Ethyl Alcohol
Key Analysis
Major problems due to high
tariffs
Major problems due to high tariffs
Main source of headstock is taken
from sugarcane.
Growth in in-house production
owing to better yield of sugarcane
With the agreement by India on
SCO, there might be new avenues
for the country to import the
product from
The dependence on USA must be
gradually reduced to decrease the
Herfendahl’s index
Importing Partners of India
Sources:- Trade Map, Market Access Map
8. Exporting Partners for India
Key Data
•Total Imported Value : $123,547,000
•Imported Quantity : 121,431 tons
•Growth in Value over 2011 to 2015 : 3%
•Last Year growth (2014-15) : (15%)
•Tariff Faced by India : 12.7% Average for the top 5
destinations
Major Export Partners
24.7% 19.5% 6.6% 5.5% 5.3%
0
10000
20000
30000
40000
50000
60000
2011 2012 2013 2014 2015
Variation of Imports in India over 2011-2015
Nigeria Ghana Angola Sierra Leone Cameroon
94.16%
5.84%
HS 27010
HS 27011
Share of the types of Ethyl Alcohol
Salient Points
Majority of exports take place to
Africa
Free Trade Agreement with
almost every African country is
boosting India’s exports.
Agricultural reforms are bound to
increase growth of ethanol
manufacturing
Decrease in the import growth of
partner countries is negative 8%
which could prove harmful for the
industry
India must look to expand its
reach of exports to other parts of
the world such as Latin and
Central America
Bombay Sea
Mundra
JNPT
Delhi ppg lcd
Kandla
Bangalore Air
Indian Ports Exporting HS 2207
Sources:- Trade Map, Market Access Map
9. Germany
Key Indicators
• Value Imported - $ 698,485,000
• Quantity Imported – 919,498 tons
• Annual growth over 5 years – (6%)
• Average Tariff imposed – 6.2%
Critical Analysis
• Clever selection of importing countries with average distance as
shortest at 550km among the top 5 importers.
• Expected growth in demand with the increasing use of ethyl
alcohol as substitutes for petrol I automobiles.
• There is a restriction on the kind of alcohol to be used during
the processing, which inhibits its extensive use as a renewable
technology in other fields.
Top Import Partners
35.8% 16.7% 15.6% 15.1% 6.3%
0
200000
400000
600000
800000
2011 2012 2013 2014 2015
ValueinBillionUSD
Year
Trend of supplying markets to Germany
Netherlands Belgium Hungary France Austria
70.12%
29.88%
HS 27010
HS 27011
Percentage of 27010 and
27011 in Germany’s imports
Netherlands Belgium Hungary AustriaFrance
Canada
Key Indicators
• Value Imported - $ 637,748,000
• Quantity Imported – 627,357 tons
• Annual growth over 5 years – (1%)
• Average Tariff imposed – 3.8%
Critical Analysis
• The annual growth has reduced drastically by 25% in the year
from 2014 to 2015.
• Maximum import, almost 98% is done from the USA.
• Canada puts 0% tariff on the top 5 countries it imports from
which is very encouraging for the import partners making this
business lucrative.
• USA exports almost 35% of its ethyl alcohol to Canada taking
leverage of the proximity.
United States of
America
Key Indicators
• Value Imported - $ 630,101,000
• Quantity Imported – 597,883 tons
• Annual growth over 5 years – (18%)
• Average Tariff imposed – 1.7%
Critical Analysis
• Lowest tariff imposed among the top importing countries for
ethyl alcohol.
• Due to increasing production in-house, the import quantity has
decreased by 18% in the last 5 years.
• It has the highest average distance of suppliers among the top 5
countries which may disincentives the government from
importing alcohol.
Top Import Partners
98%
94.13%
5.87%
HS 27010
HS 27011
Percentage of 27010 and
27011 in Canada’s imports
USA Barbados Guyana MexicoJamaica
Top Import Partners
82%
0
500000
1000000
1500000
2000000
2011 2012 2013 2014 2015
ValueinBillionUSD
Year
Trend of supplying markets to USA
Brazil Canada Guatemala South Africa Netherlands
96.90%
3.10%
HS 27010
HS 27011
Percentage of 27010 and
27011 in USA’s imports
Brazil Canada Guatemala NetherlandsSouth Afria
0.7% 0.5% 0.4% 0.2%
0
200000
400000
600000
800000
1000000
2011 2012 2013 2014 2015
ValueinBillionUSD
Year
Trend of supplying markets to Canada
USA Barbados Jamaica Guyana Mexico
5.9% 4.9% 2.8% 1.2%
Top Importers of Ethyl Alcohol and Other Spirits in World
Sources:- Trade Map, Market Access Map
10. Top Exporters of Ethyl Alcohol and Other Spirits in World
United States of
America
Key Indicators
• Value Exported- $1,831,750,000
• Quantity Exported- – 1,770,543 tons
• Annual growth over 5 years – (11%)
• Herfindahl Index - 0.17
Critical Analysis
• The Herfindahl’s index is within the range of moderately
concentrated competition as proposed by US Antiturst
Authority
• As the automobile demand is increasing around the world and
as research evolves the use of ethanol as a fuel, growth is
bound to increase.
• The growth has recently gone down owing to China’s insistence
on providing a quality certificate for the imports from USA.
Top Export Partners
35.8% 13.5% 7.5% 7.3% 6.7%
0
500000
1000000
1500000
2011 2012 2013 2014 2015
ValueinBillionUSD
Year
Trend of supplying markets from USA
Canada Brazil Philippines China Korea, Republic of
52.83%
47.17% HS 27010
HS 27011
Percentage of 27010 and
27011 in USA’s exports
Netherlands Belgium Hungary AustriaFrance
Brazil
Key Indicators
• Value Exported- - $ 880,627,000
• Quantity Exported- – 1,489,423tons
• Annual growth over 5 years – (9%)
• Herfindahl Index - 0.33
Critical Analysis
• The main source of ethanol is sugarcane while USA makes it
from corn.
• High Herfindahl Index of 0.33 indicating higher concentration.
• Vast potential for growth as Brazil still has large areas of un-
used lands which can be converted into agricultural land.
• Technology is being developed for efficient concversion of
sugarcane to ethanol by the government.
Netherlands
Key Indicators
• Value Exported- - $ 768,650,000
• Quantity Exported- – 798,266 tons
• Annual growth over 5 years – (1%)
• Herfindahl Index - 0.23
Critical Analysis
• Moderate Herfindahl’s index of 0.23 which indicates medium-
high concentration of market share.
• Germany, being a neighbour, demand is high due to the
extensive manufacturing of automobiles.
• Was the fastest growing exporter from 2007 to 2014.
Top Export Partners
51.2%
95.90%
4.10%
HS 27010
HS 27011
Percentage of 27010 and
27011 in Brazil’s exports
USA South Korea China NetherlandsIndia
Top Export Partners
31.8%
0
500000
1000000
1500000
2000000
2011 2012 2013 2014 2015
ValueinBillionUSD
Year
Trend of supplying markets from Netherlands
Brazil Canada Guatemala South Africa Netherlands
77.50%
22.50%
HS 27010
HS 27011
Percentage of 27010 and
27011 in Netherland’s exports
Germany Canada Sweden DenmarkBelgium
24.2% 6.2% 4.1% 3.1%
0
500000
1000000
1500000
2000000
1 2 3 4 5
ValueinBillionUSD
Year
Trend of supplying markets from Brazil
USA Korea, Republic of China India Netherlands
30.9% 15.6
%
4.1% 3.6%
Sources:- Trade Map, Market Access Map
11. Competition Analysis of Indian Ethyl Alcohol and Other Spirits Exports
Nigeria
Key Indicators
• Value Imported - $ 87,380,000
• Quantity Imported – 103,775 tons
• Annual growth over 5 years – (9.48%)
• Average Tariff imposed – 6.9%
Critical Analysis
• Nigeria is a signatory to WTO(1995) and GATT since 1960. It has
a Regional trade agreement with India and Brazil
• It is a signatory to two other major RTAs ‘The Economic
Community of West African States (ECOWAS)’ and Global
System of Trade Preferences among Developing Countries
(GSTP)
• The ECOWAS binds the west African countries to have a
common external tariff. Hence, there is no difference in tariffs
for all its major trading partners of Ethyl Alcohol
• The average import tariff for HS 2207 is 6.9%. However for
further classification the tariff rates are different.
• HS 220710 is the the major imported product forming 99.88%
of the imports
• Major trade is with the following 4 countries forming around
92% of the total imports
• India is the major exporter to Nigeria with 34.8 % of total
imports in 2015 with a growth rate of 190%
Top Import Partners of Ethyl Alcohol and
other spirits
Tariff: 5.0%
34.8%
Ghana
Key Indicators
• Value Imported - $ 33,517,000
• Quantity Imported – 34,000 tons
• Annual growth over 5 years – (10.68%)
• Average Tariff imposed – 10.0%
Critical Analysis
• Ghana is a signatory to WTO(1995). It has a Regional trade
agreement with India and Brazil as part of ECOWAS
• It is a signatory to two other major RTAs ‘The Economic
Community of West African States (ECOWAS)’ and a Interim
Economic partnership agreement with European Union
• The partnership with EU entitles Ghana duty free exports to EU.
However tariffs on imports from EU attract same % as other
countries
• Ghanaian imports have been dwindling for the last 3 years as
the country’s GDP growth rate has decreased dramatically
• The average import tariff for HS 2207 is 11.0%. However for
further classification the tariff rates are different.
• HS 220710 is the major imported product forming 90.0% of the
imports. HS 220720 forms the rest of imports
• Major trade is with the following 4 countries forming around
92% of the total imports
• Indian exports form the majority of imports – 72%.
Top Import Partners of Ethyl Alcohol and
other spirits
Tariff: 10.0%
72%.12.50%
Tariff: 5.0%
22.70%
Tariff: 5.0%
24.00%
Tariff: 5.0% Tariff: 10.0% Tariff: 10.0%Tariff: 10.0%
8.6%. 7.0%. 5.6%.
Angola
Key Indicators
• Value Imported - $ 30,713,000
• Quantity Imported – 30,291 tons
• Annual growth over 5 years – 19.0%
• Average Tariff imposed – 20.0%
Critical Analysis
• Angola is a signatory to WTO(1996). It has a Regional trade
agreement with India and Brazil as part of ECOWAS
• It is a signatory to several regional and bilateral free trade
agreements.
• The Southern Africa Development Community is a regional
agreement that allows free movement of goods between the
Southern African Countries.
• Bilateral agreements include countries such as China and US
The average import tariff for HS 2207 is 11.0%. However for
further classification the tariff rates are different.
• HS 220710 is the major imported product forming 100% of the
imports.
• Although Angola is a part of SADC with South Africa, the tariff
imposed on Ethyl Alcohol and other spirits is the same as that of
MFN countries 20%
• Indian is the second largest export partner – 26.4%. South Africa
is the largest partner due to free movement due to SADC
Top Import Partners of Ethyl Alcohol and
other spirits
Tariff: 20.0%
26.4%.
Tariff: 20.0% Tariff: 20.0%Tariff: 20.0%
4.3%. 11.0%. 53.2%.
Sources:- Trade Map, Market Access Map
12. Germany
Key Indicators
• Value Imported - $ 698,485,000
• Quantity Imported – 919,498 tons
• Annual growth over 5 years – (6%)
• Average Tariff imposed – 6.2%
Tariff Rates for Different Countries
• MFN duties applied are $ 207.61 /Ton of ethyl alcohol imported
this adds up to a total ad valorem of 19.65%
• The tariff for European union is 0% since it is a member of EU.
Consequently almost 99.3% of the German imports are from EU
only. Proximity to these countries also play a major factor.
• Also, There are some other countries for whom the tariff rate is
0 including Switzerland, Israel, some African and South
American countries who have a FTA with EU
• The tariff rate for South Korea is 69.20 $/Ton corresponding to
6.55% of total ad valorem since South Korea has a trade
agreement with EU which lowers the tariff but does and
eliminate it.
0% 19.65% 6.55% 0%
European union India South Korea Switzerland
Canada
Key Indicators
• Value Imported - $ 637,748,000
• Quantity Imported – 627,357 tons
• Annual growth over 5 years – (1%)
• Average Tariff imposed – 3.8%
Tariff Rates for Different Countries
• MFN duties applied are $ 40.62 /Ton of ethyl alcohol imported
this adds up to a total ad valorem of 8.56%. This is applicable on
India and other developing countries who do not have a FTA
with Canada
• Tariffs on imports from USA is 0% since both the countries are a
part of NAFTA. Consequently maximum imports, almost 98%
are from USA.
• Tariffs for south American countries excluding Brazil is 0%
• The tariff rate for South Korea is $ 27.09/Ton corresponding to
5.71% of total ad valorem since South Korea has a trade
agreement with Canada also which lowers the tariff but does
and eliminate it.
United States of
America
Key Indicators
• Value Imported - $ 630,101,000
• Quantity Imported – 597,883 tons
• Annual growth over 5 years – (18%)
• Average Tariff imposed – 1.7%
0%
USA Mexico
2.5%
South AfricaIndia
8.56% 0.0% 0% 2.5% 0%
Top Importers of Ethyl Alcohol and Other Spirits in World and their Tariffs and Non tariff barriers
Non tariff measures for Different Countries
• Indian and other non EU manufacturers need to obtain an
Import Certificate before exporting Ethyl Alcohol to EU. As a
part of the Certificate, the exporter has to deposit a security
amount with the importing country. Hence, almost no Indian
exports to Germany are present
• There are no non tariff measures for European members hence
majority of German Imports are from EU only.
5.71%
South KoreaIndia
Non tariff measures for Different Countries
• Canada does not apply any non tariff measures
• The country is focused on increasing market access and wants
to do away with unnecessary sanitary and phytosanitary
measures. This is particularly important for ethyl alcohol since it
is made from agricultural products and reduction in SPS
measure can boost trade
Tariff Rates for Different Countries
• MFN duties applied are $ 0.19 /unit of ethyl alcohol imported.
Non MFN rate is $ 1320/ton amounting to a 126% ad valorem .
This highlights the need to be a member of WTO since every
WTO member gets a MFN status. It is virtually impossible to
trade without being a member of WTO
• There is a 2.5% duty applied on imports from Brazil but still they
form about 82% of the total imports
• Interestingly Canada has an FTA with USA and Is geographically
close also, but most of the imports into the country are from
Brazil.
Brazil Canada
Non tariff measures for Different Countries
• Like Canada USA also does not apply any non tariff measures
• USA also wants to do away with non tariff barriers. This is in
effect to reduce barriers which decrease US exports
• USA also runs the Generalized System of Preferences (GSP) for
the poorest of countries which allow them to sell in US markets
without any tariffs
13. Potential Export Countries
China Jamaica Philippines
EconomicFactorsTradeFactors
Quantity Exported – 53 tons
Value Exported - $55,000
Quantity Exported – 65 tons
Value Exported - $66,000
Quantity Exported – 54 tons
Value Exported - $54,000
TradeBarriers
•Tariff Rate : 130%
Non-Tariff Barriers
•Joint Announcement NO.349 by the Ministry of Agriculture, the
General Administration of Quality Supervision, Inspection and
Quarantine
•National food safety standard on The General Principles of
Complex Food Additives.
•Notice by the National Import and Export Commodity Inspection
Bureau on domestic market management for imported liquor
Proximity
GDP Growth
Exports
Imports
Ethanol Import Partners
Ethanol Export Partners
Very close to India
7.7% (Very High)
$2.37 trillion
$1.53 trillion
Ethanol Import Value
Ethanol Export Value
Value of India’s Imports
Value of India’s Exports
Korea, Philippines, Taipei
$21,353,000
USA, Brazil, Pakistan
$360,353,000
$61,604,427,000
$9,576,579,000
Proximity
GDP Growth
Exports
Imports
Ethanol Import Partners
Ethanol Export Partners
Far from India
1.3% (Low)
$1.43 billion
$5.8 billion
Ethanol Import Value
Ethanol Export value
Value of India’s Imports
Value of India’s Exports
UK, Canada, Brazil
$11,496,000
USA, Canada, India
$26,896,000
$1,264,,000
$41,250,000
Proximity
GDP Growth
Exports
Imports
Ethanol Import Partners
Ethanol Export Partners
Closer than Jamaica
7.2% (Very High)
$80 billion
$80.7billion
Ethanol Import Value
Ethanol Export value
Value of India’s Imports
Value of India’s Exports
UAE, Malaysia, Japan
$545,000
USA, Thailand, Indonesia
$198,059,000
$518,188,000
$1,304,346,000
0
20
40
60
2011 2012 2013 2014 2015
ExportValue(thousand
USD)
Year
Exports of Ethanol
Export Value 0
500
1000
1500
2011 2012 2013 2014 2015
ExportValue(thousand
USD)
Year
Exports of Ethanol
Export Value
0
20
40
60
80
2011 2012 2013 2014 2015
ExportValue(thousand
USD)
Year
Exports of Ethanol
Export Value
•Tariff Rate : 15% •Tariff Rate : 10%
Non-Tariff Barriers
•Food and Drug Regulations
These Regulations, among other things, implement provisions of
the Food and Drugs Act in relation with labelling advertisment
preparation and the sale of food, dietary food, food
preservatives, food additives and poisonous substances in food
and drugs.
•Standards Regulations
•Wharf age Tax Resolution
Non-Tariff Barriers
•AQIS Imported Food Notice 45/04
•Australia New Zealand Food Standards Code (FSC)
•DOH AO 37-1979
•BPI Quarantine Admin Order 3, s 2005
•DOH AO 64 s 1983 / DOH AO 68, s 1983
•DOH AO No. 50, S 2001
Sources:- Trade Map, Market Access Map
14. Conclusions and Recommendations
Recommendations Conclusion
We have chosen Jamaica as the potential export destination due to the
following reasons:
Although far away than China and Philippines, the trade with Jamaica hasn’t kicked
off properly yet and ethanol could potentially be the starting point for increasing
trade with the country.
China has imposed heavy trade tariffs on Indian Ethanol exports and is highly favoring
Pakistan with lower tariffs on their imports, which is a good reason enough to not
identify it as a potential partner.
While in Philippines, although the country is growing at a very good rate and the
economic situation looks brighter, it is heavily dependent upon the Americans for
every commodity which is imported. Historically, America has used Philippines as a
pilot for carrying out operations in the Southeast Asia and it is extremely difficult to
establish an Indian demand for ethanol there.
Jamaica is one of the countries in the Caribbean islands. India has developed trade
treaties with almost every trade bloc and continent across the globe except for the
Caribbean. Hence, this represents a great opportunity for India to develop good trade
relations with Jamaica and hopefully, other Caribbean countries would follow.
The ethanol manufacturing industry in India would get a comprehensive boost if other
Caribbean nations follow the path of Jamaica and start importing ethanol from India.
Currently, they are heavily dependent upon the USA and this dependency could have
an adverse effect someday. Hence, it would be better to diversify their risk and start
importing from India so as to remain on the safer side.
Ethanol is a very important commodity in the global market constituting around 1.5%
of the world’s total trade by value.
The following conclusions could be drawn about the commodity Ethanol
from the analysis done above:
Ethanol can be produced from 2 types of system; one through sugarcane by following
the process of molasses and the other through the crop of corn. The corn can be
crushed and processed to make ethanol.
In India, the ethanol industry is not very large. India exports ethanol to mostly African
countries like Angola, Cameroon and Nigeria as thy generally find it difficult to get
ethanol from major producers like USA or Brazil
India imports majority of its ethanol from USA, Brazil and Spain. One interesting fact
here is that the European nations are one of the largest producers of ethanol as well
as the largest importers. Even USA follows the same pattern, consolidating its
position as world’s largest consumer of ethanol.
Germany, Canada and USA are the largest importers of ethanol while USA, Brazil and
Netherlands are the world’s largest exporters of ethanol
An analysis was carried out on what could be the possible destination for India to
increase its export of ethanol. After taking into consideration China, Jamaica and
Philippines, Jamaica was chosen as the preferred potential destination due to the
future growth of trade relations, the sizeable economies and the tariff and non-tariff
barriers imposed by Jamaica on India as compared to other countries
