New Delhi: The sugar industry has demanded a revision of ethanol procurement prices and extension of blending targets beyond 20 per cent, as the sector’s contribution to the national ethanol programme has declined sharply from 73 per cent to just 28 per cent.
The industry has also demanded accelerated promotion and manufacturing of Flex-Fuel Vehicles (FFVs) to boost ethanol demand and ensure market preparedness for higher blending, National Federation of Cooperative Sugar Factories (NFCSF) said in a statement.
The demand was made by the industry delegation, led by Ravi Gupta, Chairman of IFGE’s Sugar Bioenergy Group, and expert Member on the Board of NFCSF, in a meeting held at the PMO (Prime Minister’s Office) recently, it said.
In 2022-23 season (October-September), NFCSF said the sugar industry reached a significant milestone by diverting 43 lakh tonnes of sugar towards ethanol production, enabling the supply of 369 crore litres of ethanol, which accounted for 73 per cent of total ethanol blended with fuel across the country. However, in 2023-24, ethanol supply from sugar-based feedstocks declined to 270 crore litres, contributing only 38 per cent to the national blending programme.
“This is projected to fall further to 250 crore litres in 2024-25, making up just 28 per cent of the total blending target of 900 crore litres,” it said.
The main reason for this drop is that ethanol procurement prices have not been increased in line with the rise in the Fair and Remunerative Price of sugarcane, making ethanol production less profitable for sugar mills.