Page 2 - Ethanol Production

Maha permits ethanol production from maize and rice for petrol blending

The Maharashtra government has allowed the use of food grains such as maize and rice to produce ethanol through the dual feed method, to be used for blending with petrol. The ethanol thus produced shall not be used for liquor production, said an order issued by the state home department. The central and state governments earlier allowed the use of sugarcane juice and molasses for ethanol production. With the latest decision, distilleries can now operate even during the season when sugarcane is not available. Welcoming the move, B B Thombre, chairman of the West Indian Sugar Mills Association (WISMA), said, "We had requested the government to allow ethanol production from food grains during the (sugarcane) off-season." Thombre, who also heads Natural Sugars and Allied Industries, a private sugar mill, said the decision will help stabilise maize prices and generate year-round demand. "Farmers will benefit significantly, especially with maize fetching Rs 2,800 per quintal," he said,

Turning used cooking oil into diesel blending feedstock remains a challenge

India's biodiesel blending rate was at a mere 0.60 per cent in FY25, against a target of 5 per cent by 2030, largely because of limited investments and challenges in collection of used cooking oil

Sugar sector grown into ₹1 trillion industry: Food Minister Pralhad Joshi

India's sugar sector has grown to become a Rs 1.3 lakh crore industry, and it is driving rural prosperity and energy security, Union Food Minister Pralhad Joshi said on Thursday. The minister was addressing the 'Cooperative Sugar Industry Conclave 2025' & 'National Efficiency Award Ceremony'. "Under the PM Shri @narendramodi ji's leadership, India's sugar sector has grown into a Rs 1.3 lakh crore industry (annually), driving rural prosperity, energy security and green power through reforms like record ethanol blending and Atmanirbharta in fuel," Joshi said on a social media post. It is inspiring to see how the sector's evolution is shaping a sustainable, self-reliant future for India, he added. The event was organised by National Federation of Cooperative Sugar Factories Limited. It was established in 1960 to build a strong and vibrant co-operative sugar sector in India. All cooperative sugar factories and state cooperative sugar federations across the country are its ...

Millers seek easing of export curbs as DDGS glut hits wheat bran demand

Wheat bran prices drop to almost ₹20 a kg from nearly ₹25 in May 2025

Grainspan invests ₹520 cr in ethanol units, benefits from govt's subsidy

Encouraged by the Union Food Ministry's interest subsidy scheme, Grainspan Nutrients has invested Rs 520 crore to set up two grain-based ethanol plants in Ahmedabad and is supplying green fuel for blending with petrol. The two plants, which use maize and rice as feedstock, have a total installed capacity of 350 kilolitres per day. Grainspan's first grain-based ethanol plant, located at Bhamsara Village in Ahmedabad district, became operational in May 2023 with a capacity of 110 kilolitres per day. This plant was Gujarat's first grain-based ethanol facility. Enthused by the success, the company last month commissioned its second facility, which has been built at a cost of Rs 360 crore with an installed capacity of 240 kilolitres per day at the same location. The company supplies ethanol to Oil Marketing Companies (OMCs) under the Ethanol Blending Programme (EBP). "There are three grain-based ethanol plants in Gujarat, of which two facilities are being operated by us. We were the fi

Cooperative sugar mills seek ethanol price revision as blending dips to 28%

Closing sugar stocks now estimated at 4.8 million tonnes in 2024-25

India reviews US push to lift ethanol curbs amid trade deal talks

India is examining a US request to open ethanol imports for fuel use as part of broader trade negotiations, sparking concerns from domestic producers over policy reversal

Maize production needs boost, adjust prices for grain ethanol: Report

India must promote maize production and introduce more dynamic pricing for grain ethanol to unlock the full potential of fuel blending, according to a new report. The report, Unlocking Rs 35,000 crore for farmers The Untapped Potential of Grain Ethanol, also calls for uninterrupted supply of damaged, broken and surplus rice from the Food Corporation of India (FCI) and expansion of the domestic market for Distiller's Dried Grains with Solubles (DDGS). Rising maize prices have made ethanol production costlier and less competitive, potentially discouraging investment in the sector. The report, by management consulting firm Primus Partners and Grain Ethanol Manufacturers Association (GEMA), recommends incentivising farmers to shift to maize cultivation by providing high-yield seeds, fertilizers, and irrigation infrastructure. In the last Ethanol Supply Year (November-October), grain ethanol producers faced losses as procurement prices remained unchanged despite increasing maize costs,

India eyes higher ethanol blending target, boosts focus on green hydrogen

Petroleum Minister Hardeep Singh Puri announced the country had already achieved 19.6 per cent ethanol blending and was confident of reaching 20 per cent by next month

Will achieve 20% ethanol blending by April, aiming to go beyond that: Puri

India is looking at increasing its target to blend ethanol with petrol to more than 20 per cent and has formed a committee under the NITI Aayog for this, Petroleum Minister Hardeep S Puri said on Wednesday. Addressing the Advantage Assam 2.0 business summit in Guwahati, he said 19.6 per cent blending has already been achieved. "We will be looking at more than 20 per cent blending of biofuel. Already a NITI Aayog group has been set up and they are looking into it," he said. "We had set a target of 20 per cent blending by 2026, but already achieved 19.6 per cent. I am sure we will touch 20 per cent next month," he added. Puri said that the country has a capacity of 1,700 crore litre of blending, and already 1,500 crore litre are being utilised. With India spending USD 150 billion on different types of fuel imports, he said that one area where the attention is lacking is green hydrogen. "The green hydrogen price is presently USD 4.5. If you can bring it closer to USD 2.5, there will

Blending dilemma: Conflicting priorities on flex-fuel need clear policy

Ethanol in India is derived primarily from sugarcane, a crop that is not only water-intensive but is also being increasingly diverted to ethanol production

Centre slashes FCI rice price by Rs 550 per quintal to Rs 2,250 for states

The Centre on Friday reduced the reserve price of FCI rice under the Open Market Sale Scheme (OMSS) by Rs 550 per quintal to Rs 2,250 for states and ethanol producers to boost sales and support food security measures. According to a Food Ministry order, state governments and state-run corporations can purchase up to 12 lakh tonnes, while ethanol distilleries are allowed to buy up to 24 lakh tonnes at a reduced rate. The previous reserve price was Rs 2,800 per quintal for both categories. The Food Corporation of India (FCI), which manages rice stocks through weekly e-auctions, will implement the revised policy until June 30, 2025. Private traders and cooperatives will continue to pay Rs 2,800 per quintal, while central cooperatives like Nafed, NCCF and Kendriya Bhandar selling under the 'Bharat' brand will pay Rs 2,400 per quintal. The ministry has mandated that the third cycle tender for about 110 crore litres of ethanol during 2024-25 should use FCI rice, with preference given to

India to achieve 20% ethanol blending target in 2 months: Gadkari

India will achieve its target of 20 per cent ethanol blending in the next two months, Union minister Nitin Gadkari said on Wednesday. The practice of blending ethanol with petrol began in 2001 as a pilot project. "We will achieve this target of 20 per cent ethanol blending in the next two months. Use of E20 (petrol with 20 per cent ethanol) will help in reducing pollution," Gadkari said while speaking at an event. The road transport and highways minister said Tata Motors, Mahindra & Mahindra, Maruti Suzuki, and Hyundai Motors have started manufacturing vehicles that run on 100 per cent bio-ethanol. Gadkari said pollution is a serious problem in the country as 42 Indian cities are among 50 most-polluted cities in the world. "We import fossil fuels worth Rs 22 lakh crore, which is also causing pollution," he said. Prime Minister Narendra Modi had launched the higher 20 per cent ethanol-blended petrol in 2023. In the first phase, 15 cities was covered. Use of ethanol, extracted fr

Govt to focus on ethanol needs before considering sugar exports: Food secy

ISMA has urged the government to permit sugar exports immediately, citing favourable global market conditions

Govt urges sugar industry to diversify into ethanol-diesel, green hydrogen

Road, Transport and Highways Minister Nitin Gadkari on Thursday called upon the sugar industry to explore multiple avenues for diversification, including ethanol-diesel blending and green hydrogen production. Addressing the annual general meeting of the Indian Sugar and Bio-Energy Manufacturers Association (ISMA) virtually, the minister emphasised the need for setting up ethanol and CNG pumps, including through private sector participation. There is a huge potential for flex engines, ethanol-based engines, and bioCNG as alternatives to fossil fuels. Five automakers including Tatas, Suzuki, and Toyota are set to launch flex engine fuel cars in the market, he said and urged the tractor makers to start manufacturing tractors on alternative fuels. The minister suggested examining possibilities of exporting ethanol to neighbouring countries like Bangladesh, Bhutan, Nepal and Sri Lanka to expand market opportunities. Bio-bitumen production using lignin and biomass sources, along with gr

Centre grants approval for 47 ethanol projects in Bihar for loan subsidies

A total of 47 projects from Bihar have been issued in-principle approvals for interest subvention on bank loans for establishing new or expanding existing distilleries, the government said on Wednesday. Currently, 22 ethanol distilleries - 8 molasses-based and 14 grain-based - are operational in Bihar, Minister of State for Food Nimuben Jayatibhai Bambhaniya said in a written reply to the Lok Sabha. The government is implementing the Ethanol Blended Petrol (EBP) Programme nationwide, with Oil Marketing Companies (OMCs) selling petrol blended with ethanol. Under the programme, the government has set a target of 20 per cent ethanol blending with petrol by 2025-26. To boost ethanol production capacity and meet blending targets, the Centre has introduced various Ethanol Interest Subvention Schemes from 2018 to 2022. Under these schemes, 47 projects from Bihar have received in-principle approvals, she said. For each Ethanol Supply Year (ESY), OMCs invite bids from distilleries for etha

Ethanol blending saved foreign exchange worth Rs 1.08 trillion since 2014

Farmers have been paid Rs 92,409 crore so far as part of the ethanol blending program, data shows

Centre may raise purchase price of cane ethanol by up to Rs 3 per litre

A formal Cabinet note could be moved in a few days after GoM nod

Turning leftovers into mileage: How potatoes could soon power your vehicle

The Central Potato Research Institute is expected to start a plant to convert potato waste into ethanol by targeting peels and the starch from potato washing water as key components for conversion

Dwarikesh Sugar, Shree Renuka: Why sugar stocks are buzzing in trade today

Key players in the sector, including Shree Renuka Sugars, Dhampur Sugars, and Balrampur Chini Mills, were among the top gainers.