Ethanol as Fuel Government has set an ambitious target of 20% ethanol blending in petrol by 2025. This is a significant move to cut down the crude import which contribute to 25% of total import in terms of value in India. As of June this year, the national average for ethanol blending was 13%, an increase from previous year of 12.1% in 2022-23 and 10% in 2021-22. The blending ratios is reaching to nearly 16% by June 2024. What is important to understand that ethanol production in India initially relied predominantly molasses, a by-product of sugar production. The policy shift to include grains as supplementary feedstocks, such as maize and damaged rice, further diversifying the sources of ethanol has very prefound effect on raw material utilization for ethanol production. With government incentivise by setting a higher ex-distillery price of Rs 71.86 per liter for ethanol produced from maize, has led to the establishment of multi-feedstock distilleries, which operate on a m...
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