Revamping Ethanol: Sugar Industry's Call for Price Revisions and Flex-Fuel Promotions
The sugar industry is urging for a revision in ethanol procurement prices and extension of blending targets, addressing a significant drop in their contribution to the national ethanol programme. The industry seeks increased support for Flex-Fuel Vehicles to capitalize on ethanol potential and stabilize sugar market economics.
- Country:
- India
The sugar industry, once a major contributor to the national ethanol programme, is calling for crucial policy changes. Their participation has fallen sharply from 73% to 28%, prompting demands for revised ethanol procurement prices and extended blending targets beyond 20%, according to the National Federation of Cooperative Sugar Factories (NFCSF).
Spearheaded by Ravi Gupta of IFGE's Sugar Bioenergy Group, industry leaders have appealed to the Prime Minister's Office to promote Flex-Fuel Vehicles (FFVs) and enhance market preparedness for higher ethanol blending. Despite reaching a milestone by diverting 43 lakh tonnes of sugar to ethanol in 2022-23, the subsequent year saw a drop in ethanol production from sugar-based feedstocks.
The decline is attributed to stagnant ethanol procurement prices amid rising sugarcane costs. The NFCSF emphasizes that leveraging ethanol potential could stabilize sugar stock surpluses, boost financial health for producers, and support timely farmer payments, urging consideration of ethanol blending in diesel for future strategy.
(With inputs from agencies.)
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