No Dilution in Ethanol-Petrol Blending Plan Despite Sugar Feedstock Curbs: Govt

by Sukalp Sharma (The Indian Express) The decision to stop diversion of sugar cane juice and sugar syrup for ethanol production, taken to ensure enough sugar supply in the country and keep prices of the sweetener in check, led to concerns that the ethanol blending programme could be affected.

A day after the Union government directed sugar mills to not manufacture ethanol from sugarcane juice and sugar syrup, top government officials said there will be no dilution in the plan to achieve 20 per cent ethanol blending in petrol by the ethanol supply year (ESY) 2025-26.

Apart from regularly reviewing this decision, the government will also push ethanol production from other feedstocks, particularly maize. Plans to boost maize production as well as its supply to ethanol manufacturers are already afoot, the officials said.

In ESY2022-23, which ended October 31, India achieved 12 per cent ethanol blending in petrol. The prescribed blending aim for ESY 2023-24 is 15 per cent, for which public sector oil marketing companies (OMCs) would need to acquire around 700 crore litres of ethanol. According to those in the industry, around 25-30 per cent of ethanol is produced from sugarcane juice and sugar syrup, while around 45 per cent comes from B-heavy molasses — a sugar processing byproduct with substantial sugar content.

In its December 7 directive to sugar mills and distilleries, the Centre said that the supply of ethanol from existing offers received by the OMCs from B-heavy molasses shall continue. Sugarcane juice, sugar syrup,and B-heavy molasses are used for manufacturing sugar. Given the growing concerns over the likelihood of inadequate sugar production this season, the government decided to restrict the diversion of these feedstocks for ethanol production.

“The government is fully committed to the ethanol blending programme. There is absolutely no question of any dilution of our commitment to that programme,” Petroleum Secretary Pankaj Jain said, adding that the decision to not use sugarcane juice and sugar syrup to manufacture ethanol is a “temporary pause”.

India exported 61 lakh tonnes of sugar during the 2022-23 marketing year, as against a record 112 lakh tonnes in the previous year. The government has not yet allowed exports for this marketing year. To contain food inflation, the Central government has also banned exports of wheat and broken rice. It has also fixed minimum export price (MEP) for basmati rice. READ MORE

Excerpt from Free Press Journal: The Centre last year banned the use of sugarcane juice for making ethanol but later reversed the decision by allowing the use of sugarcane juice as well as B-heavy molasses to produce the green fuel but capped the diversion of sugar at 17 lakh tonnes.

Emphasising the importance of ethanol production, Gadkari urged the sugar industry to prioritise "Maximum ethanol, minimum sugar" and promote flex engine vehicles. He assured that the government would take appropriate steps regarding ethanol after April, expressing confidence after discussions with the Prime Minister and other ministers.

The Union Minister provided insights into the global sugar industry's evolution, with Brazil, India, and China emerging as the top three sugarcane producers. In 2023, global sugar output reached 188 million tons, with India contributing 33 million tons, representing 20% of the world's sugar production, he noted.

He also underscored the challenges posed by the increasing population, leading to a surge in automobiles, necessitating a shift towards alternative fuels like electric, ethanol, methanol, biodiesel, bio LNG, bio CNG, etc. Gadkari shared his use of a hydrogen car to advocate for the gas as a futuristic fuel and emphasised his commitment to promoting biofuels in India. READ MORE