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”. Addressing reporters alongside Jain, Food Secretary Sanjeev Chopra said that the country’s sugar situation and this decision will be reviewed on a monthly basis.

 

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. Erratic monsoon rains in key sugarcane-growing states like Maharashtra and Karnataka have led to concerns over domestic sugar production. Currently, Maharashtra and Karnataka are reporting 20-40 per cent lower sugar production. India is the biggest consumer of sugar in the world, and is also among its top producers.

 

Chopra said that as the situation in the sugar sector remains extremely fluid, the government will be constantly monitoring it. Jain said that there is a lack of “complete clarity” at this stage on how sugarcane and sugar production will pan out.

 

On being asked if ethanol production from B-heavy molasses will be allowed for future ethanol procurement cycles as well, the food secretary said that there is no blanket ban and all decisions pertaining to the matter will be subject to the planned monthly reviews. He added that there is also no restriction on production of ethanol from C-heavy molasses, a sugar processing byproduct with very low sugar content, and that the government will encourage sugar mills to increase ethanol production from this feedstock. Currently, ethanol from C-heavy molasses accounts for a miniscule share of the total production of the biofuel.

 

For India, which is the world’s third-largest consumer of crude oil and depends on imports to meet over 85 per cent of its requirement of the commodity, increasing the use of biofuels is a key tool towards two ends–reducing dependency on energy imports and limiting the carbon footprint of the country’s rapidly growing energy use.