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Govt’s 20% ethanol blending in petrol by 2025 will need more sugarcane: Study
The government’s aim to blend 20 per cent ethanol in petrol by Ethanol Supply Year (ESY) 2025 will require more sugarcane utilisation, a report said on Monday. This is also likely to improve sugar inventory level and cash flows of millers, it added. An ESY runs from November to October.
India’s aim to blend 20 per cent ethanol in petrol by ESY 2025 — or 9.90 billion litres annually — will require effective utilisation of both grain and sugarcane feedstock to increase its supply, Crisil Ratings said in a report.
The annual ethanol production from grains is expected to see a significant increase to 6 billion litre by the next season (this season’s production estimate is 3.80 billion litre), it stated.
The balance will have to be produced by processing ethanol from sugarcane, which is viable given the substantial capacity in place, it said.
This, in turn, can help optimise the sugar inventory, particularly considering the high carry-over stock expected at the end of the current season owing to the government restriction on diversion for ethanol production and exports, Crisil Ratings said.
Blending ethanol will help reduce India’s dependence on crude oil imports. The ethanol blending rate has steadily risen 200-300 basis points each season since ESY 2021, said the report
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