Reduced Offtake from Fragrance and Flavour Industry hits Ethanol Demand in India

Indian fragrance and flavours (F&F) industry is regarded as one of the major end user segments for Ethanol in the country. Indefinite lockdown implemented in the nation to curb the spread of coronavirus has led to an incredible loss to the F&F industry primarily affected by the decline in export due to supply chain disruptions. This decline in export has shattered a significant product demand, forcing players to cut their production rates up to 80 per cent. Moreover, the industry is anxious that it may lose its grip in the global trade as competitor China is speedily restarting operations while India is still battling to contain impact of the pandemic. The downturn in fragrance and flavour industry has consecutively struck the demand for raw material Ethanol, but due to its robust demand in the manufacturing of sanitizers, market players are still optimistic. Since F&F is one of the important growing and revenue generating sector in country, the recovery in the industry is keenly awaited by the downstream Ethanol producers to recover business losses.