| Ethanol Industry Updates |
Indian Sugar |
31-Oct-2023 |
- India achieved the target of 12% ethanol-gasoline blending target for the Ethanol Supply Year (ESY) 2022-23 season-ending by Oct’23.
- For the ESY 2022–23, the oil marketing companies (OMCs) floated a tender for 5.99 billion liters of ethanol, against which letters of intent (LoIs) for 5.6 billion liters were issued as of August 2023 and India achieved 11.7% ethanol blending in gasoline for which the industry supplied about 4.13 billion liters of ethanol. This includes about 3.45 billion liters of ethanol supplied from the sugarcane industry as of Aug’23.
- More than 80% of the ethanol requirement is produced using sugarcane (Juice/b-heavy/c-heavy molasses) as feedstock. For the 2023-24 season, the industry is estimating about 4.5 MMT of sugarcane to be diverted towards ethanol production over the 4.1 MMT that was supplied in the 2022-23 season.
- During 2022-23, Uttar Pradesh and Maharashtra diverted about 2 MMT and 1.2 MMT of sucrose for ethanol production. Karnataka diverted about 0.9 MMT of sugar. For the upcoming season, it is likely that diversion towards ethanol in Karnataka could be lower owing to lower cane availability.
- For the upcoming ESY 2023-24(Nov-Oct), the Oil Marketing Companies (OMCs) have invited bids to supply ethanol of around 8.25 billion liters and the bid is valid till Jul’24. The target is to achieve 15% ethanol-gasoline blending.
