India Allows Unrestricted Ethanol Production From Sugarcane Derivatives

(MENAFN- KNN India) New Delhi, Sep 2 (KNN) The Indian government has lifted all restrictions on the production of ethanol from sugarcane juice, syrup, and molasses for the upcoming 2025–26 Ethanol Supply Year, beginning on November 1.

This move marks a significant step toward boosting renewable fuel production and supporting the country's clean-energy transition.

Previously, ethanol production from sugarcane was capped due to concerns about lower yields and the need to ensure sufficient sugar availability for domestic consumption.

However, back-to-back good monsoons have improved sugarcane output, giving policymakers confidence to allow unrestricted diversion of cane for ethanol manufacturing.

The Ministry of Consumer Affairs, Food & Public Distribution stated that sugar availability will continue to be monitored throughout the year to maintain balance between ethanol production and consumer demand.

The decision aligns with India's target of achieving 20% ethanol blending with petrol by 2025–26, a key part of its efforts to reduce dependence on fossil fuels, cut carbon emissions, and improve energy security.

Industry leaders welcomed the decision but also called for a review of ethanol procurement prices. A miller from Maharashtra noted that fair pricing is crucial for safeguarding farmers' income, as they are bound by fixed cane prices.

Major sugar companies such as E.I.D.-Parry, Balrampur Chini Mills, Shree Renuka Sugars, Bajaj Hindusthan, and Dwarikesh Sugar have already expanded their ethanol production capacities in anticipation of higher demand.

The move is expected to benefit both the sugar industry and the energy sector, providing farmers with additional income avenues while helping India progress toward its renewable energy goals.

(KNN Bureau)

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