Supply of ethanol produced from grains is expected to reach 4.66 billion liters by the year 2026.

12-Jun-2024 05:06 PM

New Delhi. An expert from the National Sugar Institute has said that the total supply of ethanol produced from grains will more than double to 4.66 billion liters by the year 2026 as compared to the current level. According to the expert,

the total supply of ethanol for blending in petrol is likely to be 2.08 billion liters in the 2023-24 season, which may jump to 4.23 billion liters in the 2024-25 marketing season and 4.66 billion liters in the 2025-26 season. Similarly, the supply of ethanol produced from sugarcane is expected to increase to 5.50 billion liters.

It is worth noting that India is the third largest producer of ethanol in the world. Here the government has set a target of blending 20 percent ethanol in petrol by the year 2025 so that some reduction can be made in the huge amount spent on the import of petrol.

But industry analysts say that this estimate of ethanol supply will depend on government policies. It will be necessary to see what kind of steps the government takes to ensure adequate availability of the basic raw material-molasses to the ethanol manufacturing units.

It is known that for the 2023-24 season, the government has allowed the use of sugarcane equivalent to only 17 lakh tonnes of sugar in ethanol production,

whereas earlier sugarcane equivalent to 35-40 lakh tonnes of sugar was used in it. The government's priority is to increase sugar production so that its supply and availability in the domestic sector remains smooth and there is no big jump in prices.

It will also be necessary to see what is the status of sugarcane and maize production in the country during the new marketing season starting from October 2024 and what decision the government takes regarding the import of maize.