Food ministry has allowed ethanol producers to participate in Open Market Sale Scheme of rice between August and October 2024.

• Ministry also permitted use of sugarcane juice, sugar syrup, B heavy molasses and C heavy molasses for ethanol production in 2024-2025, reversing last year’s ban.
  • Earlier ban was to ensure sugar availability for domestic consumption and price stability.

Rationale behind Latest orders

• Manage Excess Stock: India has Surplus rice stocks (Exceeding 540 lakh tonnes).
• Contribute to India's energy security and self-reliance: By boosting renewable energy use through ethanol blending.

Ethanol Blending Program

• Objective: Blending of ethanol in petrol with multiple objectives including reducing import dependence, savings in foreign exchange etc.
• Target: 20% ethanol blending by 2025-2026.
• Status: Amount of ethanol blended with petrol has surged to over 500 crore liters in 2022-23, with a current blending rate exceeding 15%.

Challenges faced in ethanol Blending

• Producers: Availability of feedstock, weather related issues
• Oil Marketing Companies: Need for additional storage tanks, logistics cost and emissions
• Vehicle manufacturers: Optimization of engine for higher blends, conduct of durability studies on engines and field trials