Need sugar-ethanol price parity to achieve 10% blending, say experts

Lack of ethanol production capacity is the main hurdle in achieving the target. Brazil, the world's leading sugar producer, is a pioneer in ethanol blending with petrol and achieved more than 25%

India can achieve its 10 per cent ethanol blending target with petrol if there is price parity between sugar and ethanol, industry experts said on Monday.

In 2019-20 sugar season, ethanol blend with petrol is expected to be around 5 per cent, much less than the targeted 10 per cent by 2022, largely due to falling sugarcane production and improvement in price realisation. 

Speaking at a two-day seminar on Sustainability Mobility-Ethanol Talks, organised by the Indian Sugar Mills Association (ISMA) and its Brazilian counterpart UNICA, global ethanol expert Plinio Nastari said a long-term price policy was required to define the ethanol-versus-sugar parity,