Sugar prices in Kolhapur (S30) closed lower at INR 3,790.5 per quintal. Prices are softening on the commencement of cane crushing and sugar production for the season.
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 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.
Sugarcane juice/molasses is the key raw material in ethanol production. Indian sugar production for the current season (Oct’23-Sept’24) is estimated to be 30.6 MMT which is lower by 7% compared to the previous year.
Therefore, for the season, we estimate that about 3.5-4 MMT of sugar would be diverted towards ethanol production. The sugar industry diverted about 4.1 MMT equivalent sugar in the 2022-23 season.
Sugar prices in Kolhapur (S30) closed at INR 3,811.3 per quintal. Prices are supported by anticipated lower production alongside festive demand.
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 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.
Indian sugar production for the current season (Oct’23-Sept’24) is estimated to be 30.6 MMT which is lower by 7% compared to previous year.
The sugar industry diverted 4.1 MMT equivalent sugar in the 2022-23 season. For the season, a target of 4.5 MMT of sugar diversion to ethanol production has been set. However, owing to the estimated lower cane production, we estimate that about 3.8 MMT of sugar would be diverted for ethanol.
On account of lower sugar production in Maharashtra and Karnataka, we estimate diversion to ethanol would be lower in these states. In the 2023-24 season, Maharashtra ethanol diversion could be at least 22% lower than 1.2 MMT of sugar that was diverted towards ethanol production in the previous season. Similarly, it is estimated that Karnataka would divert about 0.3 MMT lower sugar compared to last year.
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 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.
For the 2023-24 season, offers to supply 560 crore liters of ethanol are received by OMCs in the first cycle. This includes 270 crore liters of sugarcane-based ethanol and about 290 crore liters of grain-based ethanol.
ISMA
For the season, a target of 4.5 MMT of sugar diversion to ethanol production has been set. However, owing to the estimated lower cane production, we estimate that not more than 4 MMT of sugar would be diverted for ethanol.
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.
India is all set to achieve the target of 12% ethanol-gasoline blending target for the Ethanol Supply Year(ESY) 2022-23 season-ending by Oct’23. As of Aug’23, 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.
For the upcoming 2023-24, 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. For the supply year that starts from 1st Nov’23, the target is to achieve 15% ethanol-gasoline blending.
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.