All sugarcane crushed in the country by sugar and khandsari manufacturers produces molasses. With 346 million tons of sugarcane in 2010-11 of which 80-85% would have been used by the sugar industry and khandsari manufacturers, 290 crore litres of alcohol would be available in the country. With a demand of 100 crore liters by the potable liquor industry and contracted amount of 60 crore litres for the EBP programme, around 130 crore liters is the balance available to meet the demand of other sectors. Demand of chemical industry is known to vary between 25 to 60 crore liters (depending on crude oil prices). It is because of excess production of molasses, a part of which could not be sold, that a good quantity of molasses over 600,000 tons had to be exported out of the country during the current year. If this molasses could have been converted into ethanol, it could have displaced 1% of the country’s petrol requirement. With an estimated 7-8% increase in cane production in 2011-12 sugar season, the total quantity of alcohol available would still be higher. The expert panel under Dr. Saumitra Choudhuri, for pricing of ethanol has recommended in March 2011 price of ethanol linked to price of petrol. Accordingly, the ethanol procurement price will always be lower than the ex-depot petrol price and at present the OMCs are able to save about Rs.12 over the price of petrol. EBP is therefore financially beneficial to the OMCs. The Committee has also recommended to pass part of the savings to petrol consumers. To ensure more supplies of ethanol for the programme, it is important for the Government to quickly finalize the ethanol price, recommendation for which is now pending with them for over 2 months. The national bio-fuel policy, approved by the Government, has plans for a 20% ethanol blending programme by 2017. This can be achieved only if we continue with the approved plan of the Cabinet, reiterated again and again by the Government. Questions and doubts are being raised by vested interests who procure alcohol at a throwaway price for other uses. The EBP programme is essential for the energy security of the nation, which will reduce pollution from fossil fuel and improve our use of renewable energy in the form of fuel ethanol. Annexure - A About ISMA Indian Sugar Mills Association (ISMA), the oldest industrial association in the country was established in 1932. It is recognized by the Central and State Governments as the Central Apex Organization to voice the cause of the sugar industry. Sugar mills in the private sector as well as the public sector are eligible to become members of ISMA. Its total strength of membership as on date stands at 226 and accounts for about 55% of country’s total sugar production. ISMA’s history is thus synonymous to the growth of the sugar industry in India which also began in early 1930s. It is an Apex organization and maintains close contact with all regions in India through a network of regional associations and with international organizations and associations through international bodies. ISMA is the interface between the industry and Government on matters relating to sugar policy, statistics on production, sales, exports/ imports, prices etc. ISMA maintains database for the sugar industry which is shared with all the member factories, media and also various Government organizations. India entered the sugar export market for the first time in the year 1957 which was entirely the initiative of ISMA. ISMA’s R&D Cell on sugarcane has successfully identified promising sugarcane varieties in improving sugarcane productivity which received recognition from various research institutions and Government organization etc. The results have been significant in the recent two years. ISMA interacts closely with International Industry Associations including International Sugar Organization, World Sugar Research Organization, World Association of Beet and Cane Growers and Global Alliance for Sugar Trade Reforms and Liberalization. India is largest consumer of sugar and 2nd largest producer in the world.