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Indian Express
18 hours ago
- Business
- Indian Express
Why sugar mills are worried about ethanol import and multi-feed distilleries
As talks about a trade deal between India and USA makes its way through twists and turns, the sugar industry especially in Maharashtra is worried about the country allowing for the duty free import of ethanol from the US. This comes even as the government continues to push for mills to opt for multi-feed ethanol plants that could allow mills to run on other feed stocks. While importing ethanol from USA is not new, it is primarily used for non-blending purposes. The fuel additive which is used in the Ethanol Blending Program (EBP) is the one which is domestically produced either by the sugar mills or the standalone ethanol plants. Of the 334 crore litres of non EBP fuel ethanol used annually, 100 crore litres is imported, most of it coming from the USA. Millers in the state said if duty import is allowed, the landed cost of the fuel additive would be around Rs 40-45/litre. This is much cheaper than the Rs 57.97 for ethanol derived from C heavy molasses. Prices for ethanol from other feedstock is higher and has a graded structure. Originally, the EBP was launched to help sugar mills have multiple sources of income and reduce the overproduction of sugar. While clarification about possible imports is yet to come from government sources, millers say any import will be detrimental for the industry. 'Mills have invested heavily in erecting distillers and their turn around is yet to happen. Already last year ethanol production was severely curtailed which has caused losses to us,' said a miller from Marathwada. Another cause of concern for the industry is the slow but steady push towards non-sugar feed stock. In January this year, the central government launched a special scheme for cooperative mills to opt for the construction of multi-feed ethanol plants, which would use maize, broken rice, etc., as feed stock. 'Any such diversion would cost around Rs 40-45 crore and would again add to the already existing debts of the mills,' A miller said. Of the 920 crore litres to be supplied to oil marketing companies from February-July 2025, 593 crore litres would be from food grains while 196 crores would be from sugarcane juice. Of the remainder, 132 crore litres would be from B heavy molasses and the rest from C molasses.
Time of India
16-07-2025
- Business
- Time of India
India's sugar output to surge 15%, but margin gains for mills will remain modest: ICRA
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Above-normal monsoon forecasts are likely to boost sugarcane acreage and yield in key states like Maharashtra and Karnataka, which will result in 15 per cent surge in sugar outputThe sugar cane acreage in Maharashtra and Karnataka to experience a better yield this year, boosted by an above-normal monsoon, which resulted in a 15 per cent jump in sugar output, said Rating agency ICRA in a report also sees that with sugar output experiencing an uplift, this will lead to revenues of sugar companies expanding by 6-8 per cent."ICRA projects the gross sugar production to increase to 34.0 million MT in SY2026 from 29.6 million MT in SY2025 amidst an above-normal monsoons and expected improvement in cane acreage and yield in key sugar-producing states," said Girishkumar Kadam, Senior Vice President & Group Head - Corporate Ratings, the report raises concern that profit margin gains for the sugar mills are likely to remain modest if ethanol prices remain stagnant."Despite the expected increase in diversion towards ethanol in SY2026, the closing sugar stock level is likely to be comfortable. Further, domestic sugar prices, which are currently in the range of Rs. 39-41/kg, are expected to remain firm till the start of the next season, thereby supporting mills' profitability," Girishkumar Kadam report projects that sugar sector is likely to remain stable, helped by the anticipated improvement in revenues, stable profitability and comfortable debt coverage metrics, along with the Government's policy support, including the ethanol blending programme (EBP).However, ICRA emphasizes the need for price revisions of Ethanol to sustain distillery profitability."The ethanol blending trend has remained encouraging with 20% blending target set by the Government of India achieved in the recent months," said Kadam, while commenting on ethanol blending and profitability related to the segment."Further, the Government is exploring the option of increasing the blending target beyond 20%, which will support the distilleries. However, juice and B-heavy based ethanol prices have not been revised for two consecutive years despite an increase of ~11.5% in fair and remunerative price (FRP). Hence, revision in ethanol prices remains critical to support the profitability of the distilleries and the sugar industry."
NDTV
12-07-2025
- Automotive
- NDTV
"Forcing Blended Fuel...": Consumer Slams Ethanol Petrol Policy
As India pushes forward with its plan to blend 20% ethanol into petrol (E20) by 2025-26, a consumer has publicly voiced strong opposition, raising questions about the fuel's impact on vehicle performance and consumer choice. Venkatesh Alla, a user on X (formerly Twitter), criticised the move, calling it 'outright fraud' and threatening legal action. The user, who has even in the past questioned the Ethanol Blended Petrol (EBP) programme, wrote, 'If anything happens to my vehicle due to Ethanol blended (Adulterated) Petrol, I will not hesitate to drag every single official in the Petroleum Ministry to court. We have every legal and constitutional right to do so.' He further alleged that the government was enforcing fuel policies without adequate consumer choice or transparency. 'Forcing blended fuel on us, when our vehicles aren't even designed for it, is outright fraud. You have no authority to dictate what fuel we must use. Pure Petrol and Blended Petrol must be sold separately. Let the consumer decide based on their vehicle. Who the hell gave you the right to damage our vehicles in the name of policy?' he wrote and even tagged the petroleum ministry. Here's the complete post: If anything happens to my vehicle due to Ethanol blended (Adultered) Petrol, I will not hesitate to drag every single official in the Petroleum Ministry to court. We have every legal and constitutional right to do so. Forcing blended fuel on us, when our vehicles aren't even… — Venkatesh Alla (@venkat_fin9) July 10, 2025 The EBP Programme, which seeks to cut India's dependence on fossil fuels and promote cleaner mobility, has seen significant progress in recent years. According to a NDTV Profit report, ethanol blending averaged 12.06% in FY 2022-23 and rose to 14.6% in FY 2023-24. By February 2025, it had reached 19.6%, with the 20% threshold crossed shortly after. In the last financial year, India blended 7.07 billion litres of ethanol, with oil marketing companies allocating nearly 9.96 billion litres. In another post earlier this month, Mr Alla lashed out at Indian Oil, saying, 'How much ethanol are you dumping into petrol?' He went on to add, 'Car mileage has tanked for the past year! We're forced to pay full price for petrol that's 20% adulterated; this is nothing but an organised scam. The business and the government, both are acting like shameless thieves, looting citizens in broad daylight!' Hey @IndianOilcl, how much ethanol are you dumping into petrol da? Car mileage has tanked for the past year! We're forced to pay full price for petrol that's 20% adulterated, this is nothing but an organised scam. The business and the government, both are acting like shameless… — Venkatesh Alla (@venkat_fin9) July 7, 2025 While the government continues to project the ethanol push as a cornerstone of India's green transition, critics like Mr Alla argue the environmental benefits do not justify the impact on vehicle performance and consumer rights.
Hans India
10-07-2025
- Business
- Hans India
India's retail asset securitisation rises Rs 52,000 cr in Q1 FY26
New Delhi: The retail asset securitisation market in India has shown steady growth in the first quarter (Q1) of FY26, with a total transaction volume of Rs52,000 crore, a new report said on Wednesday. This includes both pass-through certificate (PTC) issuances and direct assignment (DA) transactions, according to CareEdge Ratings report. The volume represents a 6 per cent growth over the same period previous year. Despite this, the market's stability is a positive sign, driven by strong demand for credit, confidence from investors, and the strategic efforts of originators to diversify their funding sources. One of the most significant milestones in Q1 FY26 was the completion of India's first residential mortgage-backed securitisation (RMBS) deal, carried out by RMBS Development Company Limited (RDCL). This deal was also the first securitisation transaction to be executed on the Electronic Book Provider (EBP) platform, which marks a new chapter in India's securitisation market. This transaction could act as a catalyst for more investors to enter the RMBS sector, potentially boosting innovation and participation in mortgage-backed securities. The move is expected to create more long-term funding opportunities and allow for better risk transfer. Looking at the transaction composition in Q1 FY26, there has been a noticeable shift. PTC transactions now make up 56 per cent of the total volume, which marks a significant change from previous periods when direct assignment (DA) transactions were more dominant. The increase in PTCs likely reflects changing preferences among investors, regulatory factors, and a growing desire for more standardised and tradable financial products. This shift also suggests that originators are looking to attract a broader investor base. Among the PTC issuances, asset-backed securitisation (ABS) products were a major contributor, accounting for around 75 per cent of the total volume. Mortgage-backed securitisation (MBS), on the other hand, remained steady at 10 per cent. A key highlight in Q1 FY26 was the rise in PTC issuances from Microfinance Institutions (MFIs). MFIs contributed 15 per cent of the total PTC volumes, a significant increase from 8 per cent in Q1 FY25. This growth reflects greater stability in asset quality within the microfinance sector, and suggests that investor confidence in this space is on the rise. In the ABS category, vehicle loan financing continued to be a major player, contributing over Rs 14,600 crore, or 51 per cent of total PTC issuances in Q1 FY26.
Hans India
09-07-2025
- Business
- Hans India
India's retail asset securitisation market sees 6 pc growth in Q1 FY26
New Delhi: The retail asset securitisation market in India has shown steady growth in the first quarter (Q1) of FY26, with a total transaction volume of Rs 52,000 crore, a new report said on Wednesday. This includes both pass-through certificate (PTC) issuances and direct assignment (DA) transactions, according to CareEdge Ratings report. The volume represents a 6 per cent growth over the same period previous year. Despite this, the market's stability is a positive sign, driven by strong demand for credit, confidence from investors, and the strategic efforts of originators to diversify their funding sources. One of the most significant milestones in Q1 FY26 was the completion of India's first residential mortgage-backed securitisation (RMBS) deal, carried out by RMBS Development Company Limited (RDCL). This deal was also the first securitisation transaction to be executed on the Electronic Book Provider (EBP) platform, which marks a new chapter in India's securitisation market. This transaction could act as a catalyst for more investors to enter the RMBS sector, potentially boosting innovation and participation in mortgage-backed securities. The move is expected to create more long-term funding opportunities and allow for better risk transfer. Looking at the transaction composition in Q1 FY26, there has been a noticeable shift. PTC transactions now make up 56 per cent of the total volume, which marks a significant change from previous periods when direct assignment (DA) transactions were more dominant. The increase in PTCs likely reflects changing preferences among investors, regulatory factors, and a growing desire for more standardised and tradable financial products. This shift also suggests that originators are looking to attract a broader investor base. Among the PTC issuances, asset-backed securitisation (ABS) products were a major contributor, accounting for around 75 per cent of the total volume. Mortgage-backed securitisation (MBS), on the other hand, remained steady at 10 per cent. A key highlight in Q1 FY26 was the rise in PTC issuances from Microfinance Institutions (MFIs). MFIs contributed 15 per cent of the total PTC volumes, a significant increase from 8 per cent in Q1 FY25. This growth reflects greater stability in asset quality within the microfinance sector, and suggests that investor confidence in this space is on the rise. In the ABS category, vehicle loan financing continued to be a major player, contributing over Rs 14,600 crore, or 51 per cent of total PTC issuances in Q1 FY26. This includes loans backed by a variety of vehicles such as commercial trucks, passenger cars, two-wheelers, and construction equipment, the report said. However, the share of vehicle loans has decreased compared to previous quarters, as other asset classes like unsecured personal loans, business loans, and gold loans gained popularity. Unsecured loans alone accounted for 15 per cent of total PTC issuances -- indicating a growing interest from investors in these alternative retail credit segments. In the DA segment, mortgage-backed transactions continued to dominate, making up 67 per cent of the total DA volumes in FY25. Asset-backed DA transactions accounted for 26 per cent, the report stated.
