The government has recently implemented several measures to support ethanol production, offering relief to the industry. Experts believe these changes will significantly enhance ethanol production levels.

Tarun Sawhney, Vice Chairman and Managing Director of Triveni Engineering and Industries Ltd, praised the government’s decision to lift restrictions on ethanol production. In an interview with ChiniMandi, he stated, “The recent decision to remove the cap on ethanol production from sugarcane syrup and B-heavy molasses is a clear indication of the Government’s strong commitment to boost ethanol production in India. This policy change allows sugar mills more flexibility to maximise the use of available feedstocks, effectively supporting the Government’s ambitious goal of achieving a 20% ethanol blending target by 2025-26. By optimising the utilisation of diverse resources like sugarcane syrup and B-heavy molasses, sugar mills can now play a crucial role in driving this initiative forward.”

He added, “Furthermore, the inclusion of 2.3 million tonnes of FCI rice as an additional feedstock not only expands the potential for ethanol production but also enhances the efficiency and adaptability of the ethanol supply chain. This strategic move ensures a more diversified and resilient supply chain, reducing the impact on sugar output and safeguarding the stability of domestic supplies.”

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Recently, the government has authorized sugar mills and distilleries to produce ethanol from sugarcane juice, B-heavy molasses, and C-heavy molasses for the Ethanol Supply Year (ESY) 2024-25. Furthermore, it has lifted a previous ban, allowing the sale of up to 2.3 million tonnes of rice from Food Corporation of India (FCI) stocks to grain-based ethanol distilleries.

In addition, sugar mills and distilleries are now permitted to produce Rectified Spirit (RS) and Extra Neutral Alcohol (ENA) from sugarcane juice and B-heavy molasses.

According to official data, as of September 1, 2024, 16,059 out of 82,617 PSU retail outlets are dispensing E20 ethanol-blended motor spirit.

In August, ethanol blending in petrol reached 15.8%, with cumulative blending from November 2023 to August 2024 totaling 13.6%.

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