ISMA pitches for ethanol exports citing surplus capacity
India has 450 crore litres of surplus ethanol capacity, straining the sector’s expansion, ISMA said. With 1,900 crore litres installed (900 crore sugar-based, 1,000 crore grain-based), only 1,048 crore litres were contracted by OMCs in 2024–25. ISMA urges export approval and higher blending to boost farmer income, save forex, and cut CO₂.
New Delhi: India has over 450 crore litres of surplus ethanol capacity, which is unutilised and hurting the expansion plans of the sector, the Indian Sugar and Bio-Energy Manufacturers Association (ISMA) said on Thursday urging the government to allow exports of the product.
“The capacity has already been created. It remains unutilised,” ISMA Director General Deepak Ballani told reporters.
According to Ballani, India has an installed capacity to produce 1900 crore litres of ethanol per year. Out of this, 900 crore litre is from sugar feedstock based, while another 1,000 crore litre is grain (rice, maize) feedstock based. During the ethanol supply year 2024-25, which ended on October 31, oil marketing companies made contracts for purchase of 1,048 crore litres of ethanol. In addition to this 330 crore litres was supplied for other uses.
Ballani said the government should allow the export of the surplus ethanol. He also urged for higher ethanol blending in petrol.
According to official data, India has achieved 20% ethanol blending in petrol. The industry lobby has been pitching for increasing this to 30%.
Ballani claimed that ethanol blending has helped save foreign exchange worth around Rs 1.55 lakh crore and boosted farmers’ income by Rs 1.36 lakh crore. It has also resulted in reduction in CO2 emissions to the tune of 790 lakh MT, which is equivalent of removing 175 lakh vehicles from roads.
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Source : Deccan Herald
