India to divert 20 LMT of sugar into ethanol in the current season 2020-21


The Indian sugar industry is paving its way to divert sugar to produce ethanol in the wake of surplus sugar which has constantly depressing sugar prices. With the recently announced hike in prices of ethanol, the sugar industry is armed to produce more ethanol and improve its financial health along with reducing the oil import bills.

Today bids were opened for Ethanol supplies to OMCs from Juice, B heavy, C heavy and Damaged grains. As per Industry sources, against a total requirement of 465 crore litres, 322 cr litres offers have been received. The offers are double the quantity offered in the last ethanol year. If you look at last year’s diversion, it stood around 7 lakhs tonnes equivalent sugar. This year the diversion of sugar basis the offer received today to OMCs is 20 LMT it shall have a major impact on the Sugar Balance sheet. Indian sugar industry’s apex body ISMA had given a similar projection in their first crop estimates last month.

PM Narendra Modi’s new biofuel policy that focuses to make the village economy stronger and aid India’s energy security in a cleaner environment is getting a big boost well supported by the sugar industry. The Government has a target to develop a ₹ -trillion biofuel economy.

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