Ethanol blending programme: Grains to make up for lower sugar production
India’s sharp decline in sugar production has raised concerns about meeting ethanol blending targets for the 2024-25 season ending October 31, 2025. Policymakers may need to adjust plans mid-season. Industry estimates suggest only 3.2–3.5 million tonnes of sugar will be diverted for ethanol, down from the earlier projection of 4 million tonnes, potentially impacting fuel blending goals.
One of the fallouts of plunging sugar production numbers in India is whether the country will have adequate quantities of ethanol for its blending programme in the 2024-25 supply season that ends on October 31, 2025. The question now facing policymakers is whether they need to make a mid-season course correction to ensure that the programme is not jeopardised.
Already, as per some industry estimates, total sugar diverted for producing ethanol is now expected to be around 3.2-3.5 million tonnes (MT), lower than the estimated 4 MT at the start of the season.
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Source : Business Standard
