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
Way Forward for ethanol Blending
Initiatives Taken
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