India likely to miss ethanol blending targetthis yearas govt restricts diversion from sugarcane molasses
India is likely to miss the ethanol-petrol blending target of 15 percent for the current year as the Centre has restricted the diversion of ethanol made from sugarcane molasses to oil marketing companies (OMC) to 1.7 million tonnes (MT) in the ethanol-supply year 2023-24 (December to November).
Anticipating a fall in the production in major sugar-producing states of Maharashtra and Karnataka, the government has also so far not allowed export of sugar for the year fearing a shortage in the domestic market.
However, the sugar industry sees production at a comfortable level with crop prospects looking better in the two states. “The government had expected around 29 MT of sugar production in the current year. But the output could be in excess of 32 MT after diversion to ethanol. If you take total sugar production before diversion, it could be around 34 MT,” said Atul Chaturvedi, executive chairman of Shree Renuka Sugars.
The government’s decision to limit the ethanol diversion was based on the projection of a lower sugarcane crop in Maharashtra and Karnataka following insufficient monsoon rainfall. But unseasonal showers in December have led to an improvement in the crop outlook thus reducing the shortfall to a great extent.
