In recent years, ethanol has been relatively unknown in India, but its usage in petrol is on the rise as the government promotes environmentally friendly fuel alternatives.
The government has allowed the production of ethanol using sugarcane juice and B-heavy molasses, a decision made following the ban on ethanol production from sugarcane juice. Additionally, the government aims to achieve a 20% ethanol blend by 2025-26. However, the question arises: Can India meet the target of a 20% ethanol blend?
What’s Happening?
According to CNBC TV18, after the decision from the Ministry of Food on Monday (December 18), sugar stocks in India rose over 10%. The government has decided to lift the ban on producing ethanol from sugarcane juice.
Earlier this month, the Indian government directed sugar mills to stop using sugarcane juice for ethanol production and instead increase sugar production. This decision aimed to alleviate concerns about domestic supply amidst a reduction in sugarcane production due to low rainfall.
The possibility of reduced production has already driven domestic sugar prices to nearly 14-year highs, making the government’s fight against food inflation more challenging.
Contribution of Sugarcane Juice in Ethanol Production
Sugarcane plays a crucial role in ethanol production as it contains sucrose, which is essential for ethanol production through a specific process. In India, ethanol is produced using various sources, including sugarcane juice, B-heavy molasses, and C-heavy molasses. Currently, 20% of ethanol is produced from sugarcane juice, 60% from B-heavy molasses, and a minimal amount from C-heavy molasses.
Government’s New Directives
As per Business Standard, on Friday, the government granted permission to sugar mills to use sugarcane juice and B-heavy molasses for ethanol production. However, a limit of 17 million tons has been set for sugar supply in the direction of ethanol production for the supply year 2023-24.
What’s Next?
The Indian government has set a target of a 20% ethanol blend in petrol by 2025-26. However, achieving this level of ethanol blend production may be challenging due to insufficient sugar stocks in the country.
Ethanol-blended petrol has received significant encouragement from the government, evident in the increase from 5% to 12% in ethanol blending in petrol during 2019-20. Therefore, there is hope that India can achieve its 20% target.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*The article is for information purposes only. This is not an investment advice.
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