ISMA proposes a roadmap to a 55 per cent or even 60 per cent ethanol supply contribution, contingent on policy interventions and farmer support.
The drop in Indian cane production due to the global climate phenomenon, EL-Nino, had led to a sudden stoppage of ethanol production from syrup and BHM from mid-December 2023. This meant that only 20 Lac tons of sugar was diverted towards the production of around 200 Cr litres of ethanol.
However, based on the sugar production figures, India could have afforded to produce around 250 Crore litres of ethanol more by diverting a further quantity of around 25 Lac tons sugar even after meeting full requirements of 285 Lac tons of sugar for domestic demand after leaving more than adequate 66 Lac tons of closing stock at the end of the season. Subsequently, the sugar industry could have supplied 450 Crore litres of ethanol which could have been almost adequate for the current ethanol year requirement from the sugar industry.
Looking at the statistical figures above, we delve into the challenges faced by the sugar sector in meeting the 20 per cent ethanol blending target in future and explore the policy interventions necessary to facilitate compliance. By examining the economic and environmental benefits of ethanol blending, the Indian Sugar & Bio-Energy Manufacturers Association (ISMA) aims to provide a comprehensive overview of the road ahead in achieving this critical milestone for the Nation.
India’s 20 per cent Ethanol Blending requirement
India started blending ethanol in petrol on a pilot basis in 2001 before launching the dedicated Ethanol Blended Petrol (EBP) programme in 2003. Since then, India has come a long way to set a 20 per cent ethanol blending target till 2030. This measure is designed to lower carbon emissions, enhance air quality, and promote the use of biofuels derived from renewable sources such as sugarcane, corn, or other biomass. It also aims to create a more sustainable energy mix and reduce the reliance on fossil fuels.
Prabhakar Rao, President of the Indian Sugar and Bio-Energy Manufacturers Association (ISMA), said, “The Indian sugar industry is well-positioned to meet the government’s ambitious 20 per cent ethanol blending target by 2030. Our industry can contribute a significant 55 per cent of the ethanol requirement, and even increase that to up to 60 per cent if we can get stable policy support and investment on sugarcane production stabilisation.”
Striving to achieve the same, ISMA is confident that the sugar industry is capable of meeting the 55 per cent ethanol supply to meet the 20 per cent EBP target by 2030. In addition, the industrial landscape holds the ability to stabilise the policies and investment in sugar production.
Implications for the Sugar Industry
For the Indian sugar industry, the Ethanol Blending Requirement presents both challenges and opportunities. On one hand, it offers a new market for ethanol production, creating a potential revenue stream. On the other hand, meeting the demand for ethanol production necessitates significant investments in infrastructure and technology, posing challenges for sugar producers.
Current Challenges
Availability of Raw Materials – One of the primary challenges is ensuring an adequate and affordable supply of raw materials for ethanol production. The sugarcane area needs to be expanded only marginally by about 7-8 per cent. And, the yield is required to be stabilised at about 81-82 tons per ha. The country achieved the highest sugarcane production of 4616 Lac tons in the year 2021-22 with a productivity of 82.7 tons per ha. We need to increase to 5100 Lac tons and stabilize the production to meet the country’s sugar and ethanol demand.
Additionally, the experts believe that if the cane production stabilisation measures are undertaken in collaboration with cane farmers by extending various schemes of the Govt. of India, the sugar industry can increase its contribution to even up to 60 per cent of ethanol supplies after fully meeting the sugar demand of the country.
