New Delhi: Sugar industry has urged the Centre to consider raising ethanol blending in petrol beyond the current 20 per cent level, citing unused capacity at distilleries and growing concerns over energy security, The Hindu businessline reported.
Representatives of the Indian Sugar & Bio-energy Manufacturers Association met Union Food and Consumer Affairs Minister Pralhad Joshi on March 11 to discuss the issue. The delegation was led by ISMA President Niraj Shirgaokar and Director General Deepak Ballani.
According to industry sources, the government has begun discussions on ways to increase ethanol use, including the possibility of raising the blending target. However, the minister is understood to have told the industry that the matter would be taken up after the current situation regarding LPG and crude oil stabilises.
Ballani said India’s dependence on imported crude oil and LPG exposes the country to global price swings and geopolitical risks. He added that ethanol made from sugarcane should be seen as an important part of the country’s energy security.
The industry also discussed the need to expand blending infrastructure and prepare a plan for ethanol use beyond the current E20 target.
Data shared by industry sources showed that sugar-based distilleries supplied about 119 crore litres of ethanol to oil marketing companies between November and February of the current ethanol supply year. This accounts for 41 per cent of their committed supply of 292 crore litres.
During the same period, grain-based ethanol producers supplied 209 crore litres, which is 27 per cent of their total commitment of 766 crore litres. The supply from grain producers included ethanol made from maize, rice supplied by the Food Corporation of India and broken rice.
ISMA said the ethanol blending programme has expanded significantly over the past decade. Ethanol supply has increased from 38 crore litres in 2014 to more than 660 crore litres, generating payments of ₹1.18 lakh crore to farmers and saving around ₹1.36 lakh crore in foreign exchange through reduced crude oil imports.
The industry body said expanding ethanol blending could help lower dependence on imported fuels while supporting farmers and strengthening the rural economy.
