New Delhi: India is currently sitting on more than 450 crore litres of unused ethanol production capacity, a situation that is slowing the sector’s growth, the Indian Sugar and Bio-Energy Manufacturers Association (ISMA) said on Thursday while urging the government to approve ethanol exports, reports Deccan Herald.
ISMA Director General Deepak Ballani told reporters that the country has already built the required capacity, but much of it is lying idle. He explained that India can produce up to 1,900 crore litres of ethanol annually, of which 900 crore litres come from sugar-based feedstock and 1,000 crore litres from grain such as rice and maize.
During the 2024–25 ethanol supply year, which ended on October 31, oil marketing companies signed contracts to buy 1,048 crore litres of ethanol. Another 330 crore litres were supplied for other domestic uses.
Ballani said the government should permit the export of surplus ethanol and also increase the level of ethanol blending in petrol. Official data shows India has already achieved 20% blending, while the industry has been pushing for this to be raised to 30%.
He added that ethanol blending has helped the country save about ₹1.55 lakh crore in foreign exchange and increased farmers’ income by around ₹1.36 lakh crore. It has also cut CO₂ emissions by nearly 790 lakh metric tonnes, an amount equal to taking about 175 lakh vehicles off the road.
