India is likely to produce around 30.5 million tonnes of sugar in the season which on Oct. 1, 1.6% lower than a previous industry estimate, a leading producers' body said on Thursday.
The Indian Sugar Mills Association (ISMA) in June said mills were expected to churn out 31 million tonnes of sugar in the 2021/22 season.
Estimates of higher diversion of cane juice and molasses - a by-product of the sugar manufacturing process - for ethanol would result in marginally lower sugar output in the 2021-22 season, ISMA said in a statement.
India plans to achieve 20% ethanol-blending with gasoline by 2025 to reduce its dependence on costly oil imports and slash excessive sugar production.
(Reporting by Mayank Bhardwaj; editing by Jason Neely)