US offers to assist India to achieve ethanol blending target
US agribusiness proposes India import ethanol and corn for ethanol blending target by 2025 due to sugar use restrictions. Discussions held with Indian ministries. Maize production decline may impact ethanol supply.
A delegation from the US agribusiness sector has proposed that India import ethanol and corn for feedstock to fulfil its ethanol blending target by 2025. This proposal comes in response to India’s decision to limit the use of sugar for the production of ethanol, reported Economic Times.
Alexis Taylor, the United States undersecretary for the Department of Agriculture leading the trade mission to New Delhi, emphasised the opportunity to assist India in increasing ethanol production. Taylor held discussions with officials from the ministries of agriculture, external affairs, and commerce & industry. India aims to introduce 20% ethanol-blended petrol (E20) by 2025. However, due to lower sugarcane production, the government banned the use of cane juice and B-heavy molasses for ethanol production in December.
Furthermore, the government imposed a cap on diverting 17 lakh tonnes of sugar for ethanol production for the supply year 2023-24 (November-October). Recently, it permitted sugar mills to utilize 6.7 lakh tonnes of B-heavy molasses for ethanol production in the current year.
Taylor highlighted that importing ethanol and corn for feedstock could similarly stimulate investment in ethanol production in India.
India is encouraging the use of maize as an alternative to sugar to enhance ethanol production and ensure an adequate supply of sweeteners in the market. However, according to the second advance estimate issued by the Ministry of Agriculture and Farmers’ Welfare, maise production is expected to decline to 32.4 MT from the previous year’s 38 MT. Traders indicate that this decrease may not meet demand once distilleries begin producing ethanol using maize.
Source Link : https://www.chinimandi.com/us-offers-to-assist-india-to-achieve-ethanol-blending-target/
