Ethanol diversion by sugar industry is priority: Ashwini Srivastava
At the India BioEnergy & Technology Exhibition, officials and industry leaders highlighted ethanol and green fuel priorities for 2025-26. Govt expects 340–350 LMT sugar output, with 45–50 LMT for ethanol diversion. ISMA urged higher sugar MSP (₹40/kg) and ethanol prices. Industry leaders also pressed for SAF policy support, cane productivity, and AgriTech adoption.
Speaking at the India BioEnergy and Technology Exhibition in New Delhi today, Ashwini Srivastava, Joint Secretary (Sugar) in the Department of Food and Public Distribution, reiterated the Government’s commitment towards the ethanol programme. When asked about sugar export in the ensuing season of 2025-26, he said that the priority is ethanol diversion.
“For the 2025–26 sugar season, surplus production is expected, with estimates of around 350 LMT by ISMA, and the State Government’s estimate is about 340 LMT. Further clarity will come once the first advance agricultural estimates are available from the Agriculture Ministry in October. The sugar industry is expected to divert about 45–50 LMT of sugar towards ethanol. We will review the sugar balance-sheet after that and accordingly take a call on exports”, he said.
Deepak Ballani, Director General of the Indian Sugar & Bio-energy Manufacturers Association(ISMA), stressed the industry’s call for an increase in sugar MSP and ethanol procurement prices, which have remained stagnant, calling it a setback for the industry.
“The ethanol procurement prices from B Heavy Molasses and Sugarcane Juice should be increased by at least Rs. 5 a litre, to make it cost-neutral. Regarding the MSP of sugar, I would request the Government to increase the sugar MSP to Rs. 40 a kilo by October–November, to ensure fair returns”.
On sugar exports, Ballani said sugar exports announced earlier this year helped save the industry. However, moving forward, a balance between ethanol, exports, and MSP is required. “Government should allow sugar export of 2 MMT for the next season; however, it could be in a staggered way”, he said.
On SAF, Ballani talked about the SAF Roadmap study, which was done in collaboration with Deloitte, noting that “alcohol-to-jet (ATJ) is the only viable pathway if we aim to blend beyond 1–2%.” He urged the government to put in place a transparent price and offtake mechanism to encourage private investment. “With the right policies, India could become an export hub for SAF”, he added.
Roshan Lal Tamak, Executive Director and CEO, DCM Shriram Sugar, emphasised that the sugar industry is uniquely positioned to contribute to the production of SAF, PLA, CBG, etc., as it has a strong production ecosystem encompassing ethanol, press mud, bagasse etc., all of which are available in an aggregated form and are suitable for renewable fuels.
“However, for the steady development of a production line for SAF, Polylactic Acid (PLA) etc., there is a need for a conducive policy support making these products viable and ensuring their efficient offtake etc”, he added.
Tamak said that the technology should be forward-looking and cost-effective. This will incentivise the industry to make investments in the production of above mentioned green fuel. He said that speedy SAF adoption by OMCs would not only advance decarbonisation but also bring socio-economic benefits to farmers.
He said that the focus should be on improving the cane productivity, and there is an urgent need for varietal development and for pushing mechanisation etc. “There is a need for a coordinated effort for this, which will need some structure for coordinating and monitoring bodies that should be created much along the lines of the Sugarcane Development Mission and National Sugarcane Development Board to oversee the progress made by the various institutions, research bodies, and industry players in cane varietal development and related activities.
Tamak complimented ISMA’s efforts for incorporating AgriTech, which is truly the need of the hour.
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Source : Chinimandi
