Paraguay may face an ethanol surplus this year after contraband alcohol from Brazil has been entering the market. The nine alcohol distilleries in the country have a total production capacity of 228 mln litres and output this year is estimated at 150 mln. This compares with 117 mln last year. The E-24 program will absorb around 95 mln litres this year, leaving a surplus of 50 mln litres, industry sources said. Fuel ethanol consumption in 2008 was 73 mln litres.
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