Centre likely to increase ₹2 to 3/litre for ethanol derived from different sugarcane based raw materials

India with the aim to enhance its energy security, reduce import dependency on fuel, save foreign exchange, address environmental issues and give a boost to the domestic agriculture sector, has been promoting the Ethanol Blended Petrol (EBP) Programme. The ethanol blending programme has come as a big boost and has cheered sugar manufacturers, them being a major contributor in this initiative.

According to a senior official, the Central Government is likely to increase ₹2 to 3/litre for ethanol derived from different sugarcane based raw materials under the EBP Programme for the forthcoming sugar season 2022-23 during ESY 2022-23 from 1st December 2022 to 30th November 2023. The blending percentage is also likely to increase to 12% taking the total demand of ethanol by Government OMCs to 550 crore litres. This is a major step in driving the blending target towards 20% by 2025 as per the vision of the Hon’ble Prime Minister.

With all the initiatives taken by the Government the programme the country has achieved the target of 10 percent ethanol blending, 5 months ahead of schedule which has made foreign exchange savings of Rs 41,500 crore, timely payment of Rs 40,600 crores to farmers and reduction of 27 lakh tons of CO2 emissions. Moving forward India is now looking at producing 10 to 12 billion litres of ethanol by 2025.

To increase production of fuel grade ethanol, the Government of India is also encouraging distilleries to produce ethanol from maize & rice available with FCI. The existing installed ethanol distilleries have reached around 700 crore litres and are likely to reach more than 1,200 crore litres for 20 per cent blending by 2025-26.


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