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The sugarcane industry is vital to India's ethanol and ethanol blending initiatives. As a primary feedstock, sugarcane's integration into the ethanol program has been crucial. Government policies, including guaranteed pricing, long-term contracts, and financial support for facility upgrades, have encouraged sugar mills to invest in and boost ethanol production.
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Achieving energy security and the transitioning to a thriving low carbon economy is critical for a growing nation like India. Blending locally produced ethanol with petrol will help India strengthen its energy security, enable local enterprises and farmers
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to participate in the energy economy and reduce vehicular emissions. The Government of India notified the National Policy on Biofuels – 2018 (NPB–2018) on 4.06.2018 wherein, under the Ethanol Blended Petrol (EBP) Program, an indicative target of 20% blending of ethanol in petrol by 2025-26 was laid out.
Statewise Molasses Production in India
Statewise Average Recovery of Molasses Percent Cane in India
Estimated Ethanol Production Capacity in India ESY 2022-23
Strategic Steps
During this phase, excise charge of 12.5% on ethanol was eliminated. OMCs were focused on working towards the 10% blending target. Gradually the blending rate rose to 3.5% in 2015 and 2.07% in 2016.
The blending rate of the country was about 4% at this phase. NPB set a blending target of 20% for bio-ethanol in petrol and 5% for biodiesel in diesel by 2030. The Government of India launched the PM JI-VAN Yojana during this period.
NPB 2018 - revised the 20% blending target to be achieved by FY 2025-26. The current blending rate in the country is 10.58%. Only 4 2G biorefineries are publicly identified, status of the remaining 8 biorefineries unknown.
Over the last decade, the Government has undertaken multiple interventions to promote biofuels in the country through structured programmes like Ethanol Blended Petrol Programme, National Biodiesel Mission, Biodiesel Blending Programme. Learning from the past experiences and demand supply status, the Government has revamped these programmes by taking steps on pricing, incentives, opening alternate routes for ethanol production, sale of biodiesel to bulk and retail customers, focus on R&D etc. These steps have impacted the biofuels programme in the country positively.
Public awareness campaigns and initiatives have been launched to promote biofuel usage and its benefits. The "Ethanol Blended Petrol Programme" aims to educate consumers and stakeholders about the advantages of ethanol-blended fuels. Moreover, the government is actively engaging with farmers to encourage the cultivation of biofuel crops, thereby integrating rural development with the biofuel agenda.
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