Close to 10% of the sugar produced in the country in 2021-22, or 3.4 million tonnes, is likely to be used for manufacturing of ethanol for blending with petrol, according to Indian Sugar Mills Association (Isma). With this, ethanol production in FY22 is expected to increase by 35% from the previous year to 4,500 million litres, while availability of sugar will be 31 million tonnes. "After accounting for the reduction in sugar production due to diversion of cane juice and B-molasses to ethanol, ISMA estimates sugar production in FY22 at around 310 lakh tonnes," said ISMA.