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India Becomes World's 3rd Largest Producer & Consumer Of Ethanol from Vajirao & Reddy Institute

By : Author Desk Updated : 2024-10-04 14:24:00

INDIA BECOMES WORLD’S 3rd LARGEST PRODUCER & CONSUMER OF ETHANOL

On September 26, 2024, Union Minister Shri Pralhad Joshi spoke at the India Sugar & Bio Energy Conference, emphasizing India’s achievements in ethanol production and the need for sustainable practices in sugar and bioenergy. KEY HIGHLIGHTS
  • India's Position in Ethanol Production
    • India is now the third-largest producer and consumer of ethanol in the world. This progress is due to smart policy changes by the government.
    • The Ethanol Blended Petrol (EBP) program has been key in boosting ethanol production, benefiting sugar mills financially and helping reduce greenhouse gas emissions.
  • Economic Benefits of Ethanol
    • Over the last decade, sugar mills have gained from selling ethanol, leading to the creation of new distilleries in rural areas, which has provided both direct and indirect jobs.
    • Increased ethanol production supports India’s renewable energy goals and strengthens the agricultural economy.
  • Commitment to Farmer-Centric Policies
    • The Minister stressed the importance of policies focused on farmers to stay competitive globally. Notable achievements include:
      • An 18% increase in the area used for sugarcane farming.
      • A 40% rise in sugarcane production over the last ten years.
      • The introduction of the Minimum Selling Price (MSP) for sugar in 2018 has helped secure farmers' interests, with nearly 99% of cane payments made, totaling around ?1.14 lakh crores.
  • Farmers as Energy Producers
    • Farmers are transitioning from being “Anna Dattas” (food providers) to “Urja Dattas” (energy providers), playing a crucial role in the renewable energy sector, vital for achieving India’s net-zero emissions target by 2070.
  • Global Collaboration Opportunities
    • India, as the 2nd-largest sugarcane producer after Brazil, seeks to collaborate with Brazil on biofuels like ethanol and biodiesel.
    • The Minister highlighted opportunities in the bioenergy sector, such as 2G and 3G ethanol, green hydrogen, and bioplastics, and emphasized the importance of:
      • Technology exchange and joint research to attract investments in biofuels.
      • Engaging with the Global Biofuels Alliance for broader cooperation.
  • Promoting Indian Agriculture Globally
    • India is seen as a Global Food Basket, with efforts underway to promote Indian food products internationally under the Bharat Brand.
    • Sustainable packaging practices are being encouraged to enhance the appeal of Indian agricultural products in global markets.
  • Future Outlook for Sugar Production
    • The Secretary of the Department of Food and Public Distribution noted favorable monsoons and good crop yields expected for the 2024-2025 sugar season, with government actions stabilizing sugar prices to benefit consumers.
WHAT IS ETHANOL?
  • Ethanol is mainly produced from sugarcane molasses but can also come from other agricultural by-products like rice husk and maize. It is a clear liquid known for its distinct smell and taste.
  • Renewable Fuel: Ethanol is considered renewable as it is made from plants that use solar energy for growth.
GENERATIONS OF BIOFUELS ETHANOL BLENDING PROGRAM IN INDIA
  • Launched in 2003, the Ethanol Blending Programme promotes mixing ethanol with petrol to cut down on fossil fuel use and lower carbon emissions.
  • India aims to blend 20% ethanol into petrol and 5% biodiesel into diesel by 2030. The target for 2025-2026 is to achieve 20% blending of ethanol.
CHALLENGES There are challenges in using ethanol, such as:
  • Existing gasoline storage systems may not be compatible with ethanol, requiring upgrades.
  • Sourcing enough corn or sugarcane for ethanol production can be difficult.
  • Ethanol has lower energy content than gasoline, which may lead to more frequent refueling and higher repair costs for some vehicles.
  • Ethanol production can also require significant water and land resources, impacting the environment.
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