India Pushes Ahead with Ethanol Blending Amid Sugar Output Slump

India's sugar sector faces a sharp downturn, with production dropping 18.38% to 25.82 million tonnes by July, as major states like Uttar Pradesh and Maharashtra reported reduced outputs. Sector analysts attribute this decline to adverse weather conditions, pest and disease outbreaks, and increased sugarcane diversion for ethanol production.

Amidst these challenges, the country made strides in energy policy, reaching its 2025 target of a 20% ethanol-petrol blend with ethanol derived from sugarcane. This achievement, five years ahead of the initial schedule, highlights India's commitment to energy security and emission reductions, while sparking discussions on the sustainability of ethanol production.

Looking ahead, the NFCSFL projects sugar production to reach 35 million tonnes in 2025-26, buoyed by favorable monsoons and increased cultivation in key states. However, NFCSFL's Managing Director, Prakash Naiknavare, emphasized the need for policy measures to sustain sugar mills and bolster rural employment.

(With inputs from agencies.)