The world is embroiled in a war-like situation. Iran has shut down the Strait of Hormuz, a critical point in global oil trade through which 20–30% of the world’s traded crude oil passes, following skirmishes with Israel and the USA.
ChiniMandi spoke with industry veterans and experts to understand how India can leverage domestic ethanol production to cushion the impact of the international crude shock and focus inwards.
Prakash Naiknavre, MD, NFCSF, said that this has opened a window of opportunity for the Indian sugar-energy sector. He said that the rising trend of global crude oil prices may encourage Brazil to produce more Ethanol at the cost of Sugar. This may help the Indian sugar export possibility.
“High freight & uncertain transit time for Brazilian sugar to reach Asian markets will help Indian sugar export parity. Also, due to a spurt in global crude oil prices, the Government will hasten issuing the C2 tender of 150 Cr Ltr ethanol supply, revise ethanol purchase prices & remove the current anomaly in the ethanol allocation”.
Atul Chaturvedi, Executive Chairman of Shree Renuka Sugar Mills, said that the proverb ‘diya taley andhera’ reminds us that sometimes the most obvious opportunities remain overlooked.
“India today has a vast and logical pathway to reduce its dependence on imported fossil fuels through ethanol. The country possesses enormous potential to become self-reliant in running a significant portion of its automobile fleet on ethanol-blended fuels. Restricting ourselves to E20 should not be the final milestone but rather a stepping stone toward higher blending levels,” Chaturvedi said.
He added that at a time when energy security, rural prosperity, and environmental sustainability are national priorities, expanding ethanol blending beyond E20 is the need of the hour.
“The sugar and bioenergy industry has already demonstrated its capacity to deliver, supporting farmers, stabilising sugar markets, and contributing to cleaner fuels. What it now requires is consistent and enabling policy support,” he stated.
He feels that the government should extend all possible support to the sector, through fiscal incentives, rationalisation of GST, and long-term policy clarity, so that the industry can fully realise its potential. Ignoring such an opportunity would indeed be like the darkness beneath the lamp, when the light to illuminate the nation’s energy future is already within our reach,” he stated.
Vijendra Singh, President, AIDA, said that in times of war-like situations, the logistics of crude oil imports can be severely disrupted.
“India can therefore leverage its ethanol programme to absorb shocks arising from disruptions in crude oil imports by implementing various measures such as increasing domestic ethanol blending, accelerating the adoption of flex-fuel vehicles, and exploring ethanol–diesel blending, which are already under discussion. By undertaking these measures, India can reduce its dependence on imported crude oil and strengthen energy security through greater reliance on indigenous energy resources”.
Vijay Girasse, Al Sucrose Corporation, said that Flexi-Fuel Engines are the need of the hour to go beyond E20 blending.
Experts say that ‘now is the time’ to enhance the country’s BioEnergy portfolio, moving beyond just E20.
The government has to implement supportive policy measures that pave the way for increased supplies and enable the industry to effectively manage future demand and supplies.
