India’s ethanol production capacity is experiencing substantial growth, which is anticipated to significantly enhance the country’s overall production.
According to the Department of Food & Public Distribution (DFPD), India’s ethanol production capacity has increased from 518 crore liters in 2017-18 to a remarkable 1,623 crore liters as of August 31, 2024, reflecting the government’s dedication to promoting a greener future.
The government has been actively implementing the Ethanol Blended with Petrol (EBP) Programme across the country, under which Oil Marketing Companies (OMCs) blend ethanol with petrol. The target for this programme is to achieve 20% ethanol blending with petrol by 2025.
Recently, the government has authorized sugar mills and distilleries to produce ethanol from sugarcane juice, sugar syrup, B-Heavy Molasses, and C-Heavy Molasses during the Ethanol Supply Year (ESY) 2024-25. Additionally, the government has lifted a previous ban and allowed the sale of up to 23 lakh tonnes of rice from Food Corporation of India (FCI) stocks to grain-based ethanol distilleries. This move is expected to significantly boost ethanol production.
The government anticipates that the increased capacity will fulfill the country’s domestic ethanol requirements. However, to meet the 20% blending target, around 1,016 crore liters of ethanol will be needed, with a total requirement of 1,350 crore liters when considering other uses. By 2025, an estimated ethanol production capacity of approximately 1,700 crore liters will be necessary, assuming plants operate at 80% efficiency.
Data shows that cumulative ethanol blending from November 2023 to July 2024 is at 13.3%.
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