New Delhi: Ethanol output is likely to increase in the upcoming season 2021-22 as the government has emphasised its production.
According to the Indian Sugar Mills Association (ISMA), in the current season, till 5th July, 2021, the total contracted quantity of ethanol is 333 crore litres. Ethanol manufactured from sugarcane juice and B-Heavy molasses(BHM) is expected to be 230 crore litres, which translates into diversion of around 21 lakh tonnes of sugar into ethanol.
Around 450 crore litres of ethanol would be required to meet the target of 10% ethanol blending with petrol during next season which is around 117 crore litres more than the 2020-21 season. It will translate into the diversion of another about 13 lakh tonnes of sugar as compared to the previous year. Thus a total of 34 lakh tonnes of sugar will be converted into ethanol next season.
This will result in lowering sugar output by 34 lakh tonnes during the next crushing season. However, ISMA has stated that they will get a better idea of this diversion once the tenders happen and bids are given by millers for ethanol supplies, which will be sometime in October.
According to the ISMA, after accounting for the reduction in sugar production due to diversion of cane juice and B-molasses to ethanol, ISMA estimates sugar production in 2021-22 at around 310 lakh tonnes of sugar.
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