More than 45 lakh tonnes of sugar needed for 18-20 percent ethanol blending

24-Oct-2024 04:45 PM

New Delhi. According to rough estimates, the amount of ethanol required to ensure 18-20 percent blending in petrol will require diversion of more than 45 lakh tonnes of sugar to produce the amount of ethanol produced from sugarcane.

The decision of sugar mills and distilleries regarding ethanol production will depend on the purchase price announced by the government.

It is worth noting that in the 2023-24 season, sugarcane equivalent to about 24 lakh tonnes of sugar was used for ethanol production.

According to industry analysts, there is a delay in announcing the purchase price of ethanol for the 2024-25 marketing season, which may adversely affect ethanol production and reduce its supply for oil marketing companies (OMCs) and it may also be difficult to achieve the target of 18 percent blending.

Although the government has estimated the diversion of 40-45 lakh tonnes of sugar in ethanol production in the 2024-25 marketing season, if an attempt is made to achieve the target of 18 percent blending, the actual quantity of sugar required may be more than this.

This time sugar mills have been allowed to produce ethanol from sugarcane juice and syrup, B heavy molasses and C heavy molasses and no quantitative control has been imposed on it.

But how much ethanol will be produced from which source - this decision has to be taken by the millers-distillers.

A total of 320 lakh tonnes of sugar is estimated to be produced in India during the current marketing season of 2024-25. If 45 lakh tonnes of this is used in ethanol production, then about 275 lakh tonnes of sugar stock can remain for food purposes, which is less than the potential domestic consumption of 290-295 lakh tonnes.

The industry has surplus stock of sugar so there should be no difficulty in meeting the domestic demand and requirement at least in the 2024-25 season.