Government is emphasising on ethanol production to strengthen the financial condition of sugar mills and cut oil imports. Even many mills are started focusing on ethanol production.
According to the Indian Sugar Mills Association (ISMA), ethanol supply contracts for 170 crore litres have been entered into between ethanol manufacturers/sugar mills and oil marketing companies (OMCs) for the current ethanol supply year (Dec-Nov) 2019-20.
Against this, 92.5 crore litres of ethanol have already been supplied to the OMCs between 1st Dec 2019 and 22nd June 2020, achieving an average all India blending of 5.09% with petrol till then. This is almost as per contracts signed for the supplies. The blending levels achieved in some States like UP, Haryana, Punjab, Uttarakhand, Bihar and Karnataka is much higher at 8.5% to 9.8% with petrol.
Recently, Centre has also urged the mills for diversion of excess sugarcane and sugar for the production of fuel Ethanol as a long term solution for addressing the problem of excess sugar stock.
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