Ethanol blending Programme

PROFITS

I.

Ethanol is considered a green fuel

II.

and its blending with petrol will help reduce India's heavy dependence on crude
oil imports

HURDLES
I.

In the meeting, the Petroleum Ministry officials informed that OMCs are not able to blend as they
do not have adequate storage facilities

II.

and are not keen to undertake transportation of ethanol from one depot to another for blending
purpose.

III.

OMCs are also finding ethanol price higher

IV.

The Food Ministry officials said that sugar mills are not able to supply on time due to delay in
getting excise permits

V.

. Mills are not very keen to supply due to lower prices offered by OMCs for ethanol. Sugar mills
get higher realisation from selling portable alcohol.

VI.

Farmers shift to other crops partly because of this, and also because other crops can be
grown more profitably or within a shorter time span compared to sugarcane

VII.

Cultivation of this crop tends to follow a cyclical pattern of output (with threefour years
of bumper harvests followed by relatively poor crops over a similar period subsequently)

Ways to augment
a. Ethanol in India is produced from molasses rather than directly from
sugarcane.Allowing the direct use of sugarcane for ethanol manufacture can
provide sufficient availability of ethanol. India also needs large investments to
augment crushing capacity.
b. Another option is considering the use of alternative feedstock such as sweet
sorghum or sugar beet, as is done in Europe.
c. Another option worth exploring is collaboration with Brazil and other prospective
international suppliers of ethanol in the areas of R&D, and cross-border
investments

d.

Providing incentives to encourage companies to acquire sugarcane plantations

abroad, especially in countries such as Brazil