By Alok Saxena, Executive Director and Unit Head – Sugar, Power & Ethanol Division of Zuari Industries, Unit Head, SPE Division, Zuari Industries

Sugarcane is called the “green gold” of agriculture, and indeed, this crop has historically been vital to the prosperity of rural communities. This versatile crop, esteemed for its production of sugar, jaggery, and khansari, is now at the forefront of a transformative movement. In fact, this transformation is leveraging the crop’s immense potential. Utilising its agricultural strengths, India, recognised as the second-largest producer of sugarcane globally, is addressing multiple critical issues of our time, including climate change, energy security, and rural development. The area designated for sugarcane cultivation has grown to over 5.4 million hectares, with yearly outputs exceeding 400 million metric tonnes. As a result, sugarcane has evolved beyond being just a crop; it has emerged as a catalyst for change. 

A notable illustration of how innovation and policy can align for a more sustainable and cleaner future is the government’s Ethanol Blended Petrol (EBP) initiative, which has reached a blending rate of 19.93 per cent. However, the production of ethanol is not the sole aim of this transformation. Instead, the objective is to create a sustainable ecosystem where every part of the sugarcane plant, from the juice to the bagasse, is utilised in the process. This initiative focuses on reducing the nation’s reliance on fossil fuels, stabilising incomes in rural communities, and empowering millions of farmers to take charge of their futures. Looking ahead, sugarcane stands as a powerful example of how agriculture can be leveraged to address some of the most pressing challenges facing the world today.

The Importance of Ethanol: Going Beyond the Sweetener

At the heart of this comprehensive change, the promotion of bioethanol on a global scale is the driving force behind this revolution. Crucially, India’s vulnerability to variations in world prices is a result of the country’s reliance on crude oil imports, which represent more than 80 per cent of its demand. This dependency may be reduced while also reducing greenhouse gas (GHG) emissions through the use of ethanol blending, which gives a dual benefit. Specifically, a low-carbon biofuel, ethanol, has the potential to cut greenhouse gas emissions by as much as 90 per cent when compared to fossil fuels. When combined with fuel, it enables a cleaner combustion, which in turn reduces hazardous pollutants and so improves the quality of air in metropolitan areas. At the same time, the economic benefits are very convincing. The industry has produced what some people refer to as a “green oil field” above the ground by rerouting sugarcane juice and molasses towards the manufacturing of ethanol. Not only does this help to maintain stable sugar prices, but it also ensures that sugar mills and farmers have a consistent source of revenue, breaking the cycle of volatility that has plagued the sugar industry for a long time.

Putting an End to the “Vicious Cycle” of Unpredictability

Over the course of several decades, the sugar sector in India has been mired in a “vicious cycle” of both surplus and scarcity issues. The years of high output resulted in gluts on the market, which caused sugar prices to plummet and led to an increase in arrears owed to farmers. In contrast, years with limited production led to price increases, which were detrimental to customers. Now, the production of ethanol serves as a stabilising element, facilitating the transformation of sugarcane juice and molasses that are abundant into ethanol during periods of fuel surplus. This method efficiently regulates sugar supplies, thus ensuring stable market prices. Additionally, the industry has experienced a transformation due to the introduction of high-yield sugarcane varieties, such as Co 0238. This cultivar has boosted sugar recovery rates by more than 1.5 units and has increased yields for a number of growers by a factor of two. These kinds of bumper harvests would have been a financial hardship in the past due to the fact that there was an excess supply. Significantly, this surplus is currently absorbed by the ethanol corridor, which consequently transforms prospective losses into profitable earnings.

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