Ethanol production expected to increase from grains along with sugarcane

16-Apr-2025 05:51 PM

New Delhi. The Central Government has lifted the previous season's restrictions on the use of sugarcane for ethanol production in the 2024-25 marketing season.

Although sugarcane production has declined again this year, the impact is more visible on sugar output rather than ethanol.

Last season, sugarcane equivalent to about 21.50 lakh tonnes of sugar was used for ethanol, while this season the quantity is expected to rise to 32–35 lakh tonnes. However, sugar production is likely to fall by 50–60 lakh tonnes.

Meanwhile, ethanol production from grains such as rice and maize is also expected to increase this season. The domestic rice stock is sufficient and prices remain stable.

The government has approved 24 lakh tonnes of rice from its stock for ethanol production at a fixed rate of Rs 2250 per quintal, giving distilleries an affordable option.

Maize supply is also improving, and though its market price is above the support price of Rs 2225 per quintal, it remains a viable raw material for ethanol. Import options from countries like Myanmar are also being considered.

Ethanol blending in petrol rose from an average of 12.06 percent in 2022-23 to 14.06 percent in 2023-24. This is expected to climb further to 18–20 percent in 2024-25, contributing to reduced petroleum imports and foreign exchange savings.