Rising tensions in the Gulf region and the resulting increase in global crude oil prices have strengthened the case for expanding domestic biofuels such as ethanol, the National Federation of Cooperative Sugar Factories (NFCSF) said, Indian Cooperatives reported.
The federation said it is working with the central government to address several pending issues related to ethanol production. These include demands for higher ethanol procurement prices, increased allocation for ethanol supply and the release of a new tender under Cycle 2 of the ethanol procurement programme.
NFCSF president Harshvardhan Patil said the recent rise in crude oil prices due to geopolitical tensions in the Gulf region underlines the importance of strengthening domestic fuel alternatives. He also noted that in Brazil, the world’s largest sugar producer, higher energy prices could lead mills to divert more sugarcane toward ethanol production in the coming crushing season.
The Delhi-based federation, which represents cooperative sugar factories across India, also backed the government’s ethanol blending policy. At the same time, it criticised what it called a “mischievous campaign” that is spreading confusion about ethanol blending. According to the organisation, some groups have been circulating misleading claims that ethanol blending reduces vehicle efficiency and mileage.
The federation welcomed the government’s decision to mandate the sale of petrol blended with up to 20% ethanol (E20) with a minimum Research Octane Number (RON) of 95 from April 1. It said the move would strengthen India’s energy security and support the agricultural economy.
NFCSF urged the government to issue clear information through an official notification so that the public is not misled. It said the ethanol blending policy has been framed only after detailed technical and scientific studies.
Patil also thanked Narendra Modi, Amit Shah and Hardeep Singh Puri for taking what he described as an important decision.
According to the government notification, oil marketing companies will supply ethanol-blended petrol containing up to 20% ethanol in line with standards set by the Bureau of Indian Standards. The fuel must maintain a minimum Research Octane Number of 95 across states and union territories.
The policy also allows flexibility in certain situations. Oil companies may be permitted to sell ethanol-blended petrol with BIS-approved octane ratings for specific grades of petrol or in certain regions if required.
Research Octane Number indicates a fuel’s ability to resist engine knocking, which occurs when fuel burns unevenly inside an engine. Higher RON fuels provide greater resistance to knocking and help engines run smoothly.
NFCSF said the ethanol blending policy will benefit industries linked to ethanol production, including sugar-based distilleries, grain-based distilleries and maize processors. The federation added that the programme will also help reduce India’s dependence on imported crude oil.
According to estimates, the ethanol blending initiative has already helped India save nearly Rs 1.4 trillion in foreign exchange on crude oil imports. It has also strengthened the agricultural economy by providing around Rs 40,000 crore every year to farmers growing crops used for ethanol production.
