Ethanol production capacity in India increases

The ethanol production capacity in India is experiencing significant growth, which is expected to boost the country’s overall production.

According to the Department of Food & Public Distribution (DFPD), India’s ethanol production capacity has risen from 518 crore liters in 2017-18 to an impressive 1,623 crore liters in 2023-24 (As on 31st August 2024), demonstrating the government’s commitment to fostering a greener future.

The Government has been implementing the Ethanol Blended with Petrol (EBP) Programme nationwide, under which Oil Marketing Companies (OMCs) sell petrol blended with ethanol. The government has set a target of achieving 20 per cent ethanol blending with petrol by 2025 under this programme.

Recently, the government has allowed sugar mills and distilleries to produce ethanol from sugarcane juice, B-Heavy Molasses, and C-Heavy Molasses during the Ethanol Supply Year (ESY) 2024-25. Additionally, the government has lifted a previous ban and permitted the sale of up to 23 lakh tonnes of rice from Food Corporation of India (FCI) stocks to grain-based ethanol distilleries. This is expected to significantly enhance ethanol production.

The government believes that the growing capacity will meet the country’s domestic ethanol needs. However, to achieve the 20% blending target, approximately 1,016 crore liters of ethanol will be required, totaling 1,350 crore liters when accounting for other uses. By 2025, it is estimated that an ethanol production capacity of around 1,700 crore liters will be necessary, assuming plants operate at 80% efficiency. According to data, cumulative ethanol blending from November 2023 to July 2024 stands at 13.3 per cent.