Closing sugar stocks now estimated at 4.8 million tonnes in 2024-25
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
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,
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
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
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
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 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
ISMA has urged the government to permit sugar exports immediately, citing favourable global market conditions
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
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
Farmers have been paid Rs 92,409 crore so far as part of the ethanol blending program, data shows
A formal Cabinet note could be moved in a few days after GoM nod
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
Key players in the sector, including Shree Renuka Sugars, Dhampur Sugars, and Balrampur Chini Mills, were among the top gainers.
India usually exports 2 million to 4 million metric tons of corn, but in 2024, exports are expected to drop to 450,000 tons
The government on Thursday permitted the sale of up to 23 lakh tonnes of rice from Food Corporation of India (FCI) stocks to grain-based ethanol distilleries, reversing a ban imposed last year. The food ministry, as per a directive, has allowed ethanol producers to participate in e-auctions and purchase rice between August and October 2024 under the Open Market Sale Scheme (OMSS). This decision comes as the government grapples with surplus rice stocks exceeding 540 lakh tonnes, prompting efforts to create storage space for the upcoming harvest. The ministry stated, "Maximum 23 lakh tonne may be allowed for lifting to ethanol distilleries." Ethanol makers can purchase rice through weekly e-auctions. Purchases are subject to ethanol allocation by oil manufacturing companies. The government had halted rice sales for ethanol production in July 2023. The ban coincided with restrictions on non-basmati white rice exports. The FCI has been conducting e-auctions for rice sales to private
he world's second-biggest sugar producer imposed restrictions on diverting sugar for ethanol production in December 2023 to increase sugar output after cane crop was hit by below-average monsoon rains
Some reports say the maize-based industry has demanded immediate imports of 5 million tonnes of duty-free imports to tide over the supply crunch
Industry experts anticipate a shift back to sugarcane-based molasses as the primary feedstock for ethanol production next year, driven by expected surplus sugar supplies and calls to lift restrictions