Encouraged by a high share of supplied against its commitment, compared with the grain-based distilleries, the Indian industry has taken up the issue of increasing blending from the current 20 per cent with Food Minister Pralhad Joshi.
It is learnt that the government has started deliberations on increasing ethanol use, given excess capacity sitting idle due to lower demand, and options include raising the blending level.
Minister links decision to energy situation
Joshi is said to have assured sugar industry representatives that the government would focus on the ethanol issue once the current situation on LPG and eases.
On March 11, Indian Sugar & Bio-energy Manufacturers Association (ISMA) President Niraj Shirgaokar and Director-General Deepak Ballani met Joshi and discussed the current challenges confronting the sugar and bio-energy sector, the industry body said on a social media post.
“India’s heavy dependence on imported crude oil and LPG makes the country vulnerable to geopolitical disruptions and price volatility. Domestic biofuel production, particularly ethanol derived from sugarcane, must therefore be viewed not only as an agricultural or environmental initiative but as a strategic pillar of national energy security,” Ballani told businessline.
Biofuels seen as strategic energy buffer
The ethanol blending programme has already demonstrated its ability to reduce crude import dependence, save valuable foreign exchange, and provide a stable income stream to millions of farmers. A clear policy roadmap to scale up ethanol usage will help cushion the country against global fuel shocks while simultaneously strengthening rural economies and accelerating the transition to cleaner energy, he said.
The implications of the evolving geopolitical landscape on global energy markets, the importance of accelerating ethanol blending in India, including the expansion of blending infrastructure and the roadmap beyond E20, were discussed in the meeting, ISMA earlier said in a post.
Discussion on roadmap beyond E20 blending
According to industry sources, the sugar industry has supplied 119 crore litres, which is 41 per cent of its committed quantity of 292 crore litres of ethanol – 94 crore litres made from juice, 21 crore litres from B Heavy Molasses (BHM) and 4 crore litres from C Heavy molasses to the oil marketing companies (OMCs) during November-February of current ethanol supply year (ESY).
In comparison, the grain-based ethanol producers have supplied 209 crore litres, which is 27 per cent of their commitment of 766 crore litres – 123 crore litres from maize, 69 crore litres from rice supplied by FCI, and 17 crore litres from 100 per cent broken rice.
Grain-based producers report supply progress
Meanwhile, ISMA on Friday said that India’s ethanol blending programme (EBP) is emerging as a transformative initiative, significantly reducing reliance on imported fossil fuels while unlocking new growth opportunities for the sugar, bio-energy and agricultural sectors, and strengthening the rural economy.
Ethanol push boosts rural economy prospects
Expanding India’s ethanol blending programme and developing a robust bioenergy ecosystem can play a strategic role in reducing dependence on imported fossil fuels while supporting the rural economy, ISMA said in a statement on Friday.
“Ethanol supply has increased significantly from 38 crore litres in 2014 to over 660 crore litres, generating ₹1.18 lakh crore in payments to farmers and saving about ₹1.36 lakh crore in foreign exchange through reduced crude oil imports,” it said.