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Hindustan Times
3 days ago
- Automotive
- Hindustan Times
India achieves 20% ethanol blending target 5 years ahead of schedule: ISMA
India has achieved its target of 20 per cent ethanol blending with petrol five years ahead of schedule, the Indian Sugar & Bio-energy Manufacturers Association (ISMA) said. In a statement, ISMA said that this achievement represents dramatic growth from the modest 1.5 per cent blending rate when the program began in 2014. It also claimed that the ethanol blending program has delivered substantial economic and environmental benefits. PTI has reported that ethanol production surged from 38 crore litres in 2014 to 661 crore litres blended as of June 2025, while generating 698 lakh tonnes in carbon dioxide emission reductions. The program has provided significant financial benefits to India's agricultural sector, with farmers receiving ₹1.18 lakh crore and distilleries earning ₹1.96 lakh crore over the period, claimed ISMA. The initiative has also helped India save ₹1.36 lakh crore in foreign exchange costs. "This achievement is a monumental leap for India's energy independence and rural prosperity," said Deepak Ballani, Director General of ISMA, while also adding, "The government's unwavering policy direction and visionary leadership have not only made this national success possible five years ahead of schedule but have also set a powerful precedent for our collective future in green energy." Also check these Cars Find more Cars UPCOMING Indian FTR 1200 1203 cc 1203 cc ₹ 16.30 - 16.50 Lakhs Alert Me When Launched Indian Scout Bobber 1133 cc 1133 cc 25 kmpl 25 kmpl ₹ 17.17 Lakhs Compare View Offers Indian Roadmaster 1890 cc 1890 cc 20 kmpl 20 kmpl ₹ 43.49 Lakhs Compare View Offers UPCOMING Indian Chief Classic 1811.0 cc 1811.0 cc 20.0 kmpl 20.0 kmpl ₹ 21.30 Lakhs Alert Me When Launched Indian 2025 Challenger 1768 cc 1768 cc 18 kmpl 18 kmpl ₹ 36.12 Lakhs Compare View Offers Yamaha MT-15 V2 155.0 cc 155.0 cc 56.87 kmpl 56.87 kmpl ₹ 1.70 Lakhs Compare View Offers The sugar industry has played a central role in India's ethanol economy, supplying biofuel derived from sugarcane juice, B-heavy molasses and other agricultural by-products, ISMA said. The early achievement of the 20 per cent blending target, originally set for 2030, demonstrates India's commitment to reducing dependence on fossil fuel imports while supporting rural economic development, the industry association added. Ethanol is blended with petrol to reduce the pollutant-emitting properties of the fossil fuel. Keeping pace with this development, automakers in the Indian automobile market too have been making engines that are compatible with the E20 petrol, which has 20 per cent ethanol blended. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date:
Time of India
5 days ago
- Business
- Time of India
India achieves 20% ethanol blending target 5 years ahead of schedule: ISMA
India has achieved its target of 20 per cent ethanol blending with petrol five years ahead of schedule, the Indian Sugar & Bio-energy Manufacturers Association (ISMA) said on Friday. The achievement represents dramatic growth from the modest 1.5 per cent blending rate when the program began in 2014 under Prime Minister Narendra Modi's administration, ISMA said in a statement. The ethanol blending program has delivered substantial economic and environmental benefits, according to ISMA data. Ethanol production surged from 38 crore litres in 2014 to 661 crore litres blended as of June 2025, while generating 698 lakh tonnes in carbon dioxide emission reductions. The program has provided significant financial benefits to India's agricultural sector, with farmers receiving Rs 1.18 lakh crore and distilleries earning Rs 1.96 lakh crore over the period. The initiative has also helped India save Rs 1.36 lakh crore in foreign exchange costs. "This achievement is a monumental leap for India's energy independence and rural prosperity," said Deepak Ballani, Director General of ISMA. "The government's unwavering policy direction and visionary leadership have not only made this national success possible five years ahead of schedule but have also set a powerful precedent for our collective future in green energy." The sugar industry has played a central role in India's ethanol economy, supplying biofuel derived from sugarcane juice, B-heavy molasses and other agricultural by-products, ISMA said. The early achievement of the 20 per cent blending target, originally set for 2030, demonstrates India's commitment to reducing dependence on fossil fuel imports while supporting rural economic development, the industry association added.>
Time of India
5 days ago
- Business
- Time of India
India hits 20% ethanol blending target 5 years early; big jump from 1.5% in 2014: Report
Representative AI image India has reached its target of blending 20% ethanol with petrol five years ahead of schedule, according to the Indian Sugar & Bio-energy Manufacturers Association (ISMA). This marks a major leap from just 1.5% ethanol blending in 2014, when the program was launched under Prime Minister Narendra Modi's government, ISMA said in a statement on Friday. The ethanol blending program has yielded considerable economic and environmental advantages, as evidenced by ISMA's statistics. "This achievement is a monumental leap for India's energy independence and rural prosperity," Deepak Ballani, Director General of ISMA told PTI. "The government's unwavering policy direction and visionary leadership have not only made this national success possible five years ahead of schedule but have also set a powerful precedent for our collective future in green energy," Ballani added. From 38 crore litres in 2014, ethanol production increased to 661 crore litres blended as of June 2025, resulting in 698 lakh tonnes reduction in carbon dioxide emissions. The agricultural sector has benefited substantially, with farmers receiving Rs 1.18 lakh crore and distilleries earning Rs 1.96 lakh crore. Additionally, India has saved Rs 1.36 lakh crore in foreign exchange expenditure. The sugar industry has been instrumental in India's ethanol production, utilising sugarcane juice, B-heavy molasses and other agricultural by-products for biofuel production, according to ISMA. Reaching the 20% ethanol blending target, originally set for 2030, shows India's strong commitment to cutting down on fossil fuel imports and boosting rural economic growth, the industry association noted. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
08-07-2025
- Business
- Time of India
ISMA urges government to restore 50:50 grain-sugar ratio for ethanol production
The Indian sugar industry is calling on the government to reinstate a balanced 50:50 ratio for grain-based and sugar-based ethanol production. Such a move would allow sugar mills to diversify revenue streams, improve cash flows, and ensure timely payments to farmers, thereby enhancing their overall financial stability, says Deepak Ballani, Director General of the Indian Sugar & Bio-energy Manufacturers Association ( ISMA ). In an interaction with ET Digital, Ballani emphasises that subdued sugar prices and an uncertain ethanol pricing framework are currently causing financial strain in the sector. This uncertainty is making it difficult for mills to meet their payment obligations to farmers and maintain sustainable operations. Meanwhile, ISMA expects the upcoming 2025-26 sugar season to be a bumper in terms of production. Edited excerpts: The Economic Times (ET): Where does India stand in terms of sugar production? What are the projections for next season? Deepak Ballani (DB): The main sugar season 2024-25 has nearly concluded and India's sugar production for the season is expected to conclude with a net sugar production of approximately 261-262 lakh tonnes. The special crushing season in South Karnataka and Tamil Nadu, scheduled from June-July to 30 September 2025, is anticipated to add 3-4 lakh tonnes of sugar to the current season's production, as several factories resume operations during this period. Including special season, the sugar production of around 261-262 lakh tonnes has been projected, after diversion to ethanol. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Daughter thought she had saved 'cute bunnies.' The vet pales when he realizes what they really are Interesticle Undo In December 2024, we had estimated sugar consumption at 280 lakh tonnes, down from 290 lakh tonnes last year. The final figure is expected to be around 279-280 lakh tonnes. Given this, the closing stock is likely to be approximately 52 lakh tonnes. By September 30, we aim to have a closing stock equivalent to about two months' worth of sugar, as our mills typically start operating again in the second or third week of October. Live Events Since new sugar stocks take time to arrive, we maintain a two-month buffer for October and November to ensure a smooth transition and uninterrupted supply. With a combined estimated consumption of 45 lakh tonnes for October and November, and a current stock of 52 lakh tonnes, we are well-covered. Additionally, with Diwali expected early this year, mills will start operating by the third week of October, ensuring a timely arrival of new stock. Adequate stock levels have a direct impact on prices, and with sufficient stock, prices tend to stabilise, reflecting a healthy market situation. The domestic sugar prices have decreased by around Rs 100-150 per quintal over the past two months. Notably, the upcoming 2025-26 sugar season is expected to be bumper in terms of production, driven by increased crop area and yields, particularly in key sugar-producing states like Maharashtra and Karnataka. ET: What are expectations from the next season? DB: With a projected bumper production for the 2025-26 season and expected diversion of 40-45 lakh tonnes for ethanol, considering potential price revisions, we are likely to see a significant accumulation of sugar stocks. However, the current global price scenario isn't favorable for exports, which could pose a challenge when India has a substantial sugar stockpile by November and December. If global prices remain muted, it might be difficult to export sugar at that time. A large accumulation of sugar stocks, coupled with potentially muted global prices and limited export opportunities, could lead to a weakening of domestic sugar prices. This, in turn, might cause significant challenges for the industry, including delayed cane payments and other related issues. ISMA is pushing for three key agendas this year — ethanol rate hike, minimum selling price and export announcement to save the industry. The industry seeks advance permission for sugar exports in order to plan production schedules effectively, as production of raw sugar requires some technical or process changes in the sugar plant. Knowing the export quota beforehand would allow them to decide on the quantity of raw sugar to produce, which is in higher demand globally, and better manage their overall production and diversion to ethanol. ET: What is the sugar recovery rate on an average? The sugar recovery rate has been fluctuating in the key producing states in the recent past. How have things been on this front? DB: In the 2024–25 sugar season, the gross sugar recovery rate stands at around 10.45%, lower than the 10.7% to 10.9% range recorded over the past two to three years. Regionally, Uttar Pradesh saw a decline of 0.6 percentage points, while Karnataka recorded a slight increase of 0.1 percentage point over last year. In Maharashtra, the recovery rate declined by 0.2 percentage points compared to the previous season. Going forward, sugar recovery in Uttar Pradesh is expected to remain stable, while Maharashtra and Karnataka may witness some improvement in the coming season. In Uttar Pradesh, varietal replacement is underway, particularly in the central and eastern regions, where farmers are shifting to different sugarcane varieties. This transition is largely driven by concerns over climate change and the need for pest and disease resistance varieties. In contrast, the western parts of the state are not facing the same level of varietal pressure, and sugarcane cultivation there remains relatively stable. ET: Experts are urging the replacement of sugarcane variety Co 0238 due to its susceptibility to red rot disease, which has led to declining yields. But, do we have enough high-yielding, disease-resistant, and high-sugar-content varieties as replacements? DB: Developing new sugarcane varieties typically takes 10 to 12 years, but efforts are underway to accelerate the process using advanced breeding technologies. It usually takes 2 to 3 years for new varieties to gain a significant share in cultivation. Varietal trials are being conducted under ISMA – ICAR project, and first year test results have identified 2 to 3 promising new varieties for sub tropical regions. These varieties are showing encouraging results in terms of both yield and sugar recovery, offering optimism for improved performance in the coming seasons. ET: ISMA has been lobbying with the government to establish a linkage between Fair and Remunerative Price (FRP) and sugar and ethanol prices to make the sugar price more competitive. You have been saying that every time the FRP is increased there should be a corresponding revision in sugar and ethanol prices, making ethanol production less profitable for sugar mills. How are things moving? DB: For the 2025–26 sugar season, the government has increased the FRP of sugarcane by Rs 15 per quintal, bringing it to Rs 355 per quintal. This is a positive step to motivate farmers. However, ethanol prices have remained unchanged since the 2022–23 season. Currently, B-heavy molasses-based ethanol is priced at Rs 60.73 per litre, and sugarcane juice-based ethanol at Rs 65.61 per litre. In contrast, the cost of production is significantly higher—around Rs 70.70 per litre for juice-based ethanol and Rs 66.09 per litre for B-heavy molasses-based ethanol. If we assess this against a reasonable return on investment of 6–8%, the price of juice-based ethanol should be around Rs 76.33 per ltr, and B-heavy ethanol around Rs 70.65 per litre, according to the formula that was historically used by the government. We have shared this calculation and recommendation with the government for consideration and revision of ethanol prices. The sugar industry needs profitability to invest further, repay loans, and ensure timely payments to farmers. Without financial stability, the industry's growth and sustainability will be at risk. ET: Previously, ethanol derived from sugarcane accounted for over 70% of the supply to India's ethanol blending programme (EBP). However, this share has now dropped below 30%, reflecting a significant shift in the feedstock mix. In contrast, the contribution of grain-based ethanol has surged, rising from 27% to around 72%. Notably, sugar mills have invested around Rs 40,000 crore for ethanol production facilities. Isn't this trend detrimental to the interests of the sector? DB: The industry is seeking the government's support in restoring the 50:50 share of grain and sugar for ethanol production. This would help sugar mills generate revenue and ensure timely payments to farmers. Without a stable ethanol production framework and with depressed sugar prices, the industry's financial sustainability and ability to repay farmers would be at risk. ET: Is producing sugar currently more profitable than ethanol for sugar mills? DB: The sugar industry needs to strike a balance between sugar production and ethanol production. Historically, when ethanol production wasn't a significant factor, the industry faced challenges like delayed payments and arrears due to low domestic sugar prices and high production levels. Now, with ethanol production, the industry can diversify its revenue streams and better manage its finances. Both sugar and ethanol production are crucial for the farmers welfare and industry's sustainability and growth.
Yahoo
25-03-2025
- Business
- Yahoo
India Set to Maintain Sugar Export Quota on Ample Supplies
(Bloomberg) -- India plans to maintain its one-million-ton sugar export quota for the current season, according to a person familiar with the matter, easing worries about possible supply restrictions that boosted global prices last week. They Built a Secret Apartment in a Mall. Now the Mall Is Dying. Why Did the Government Declare War on My Adorable Tiny Truck? Chicago Transit Faces 'Doomsday Scenario,' Regional Agency Says LA Faces $1 Billion Budget Hole, Warns of Thousands of Layoffs Trump Slashed International Aid. Geneva Is Feeling the Impact. The country will not bar outbound shipments as the world's second-biggest producer will have enough stockpiles at the end of this season on Sept. 30, even after a drop in production, said the person, who asked not to be identified as the information is confidential. The country's supplies are adequate to meet domestic demand for more than two months before crushing for next year's crop begins, the person added. Some news reports last week had suggested that the country was mulling restricting overseas sales because of lower production estimates, pushing prices higher. White sugar futures fluctuated in a tight range in London on Tuesday after falling in the last two sessions. India's local consumption will be lower this year compared with the last season, when national elections boosted demand for beverages and sweets, said the person, adding that planting for the 2025-26 crop was progressing well in Maharashtra and Karnataka. In January, the South Asian nation permitted mills to export as much as one million tons this season, easing restrictions that had curbed shipments for more than a year. The country has shipped much larger volumes in the past. A spokesperson for India's food and commerce ministries did not respond to a request for comment. The factory-gate selling price of sugar for millers in top-growing regions Uttar Pradesh and Maharashtra have been falling since the beginning of March, indicating supplies at home are more than enough to meet demand, according to the Indian Sugar & Bio-energy Manufacturers Association. The market is also keeping an eye on top grower Brazil amid concerns that dry weather could delay the start of the cane crushing next month and hurt output, keeping supplies strained in the near term. --With assistance from Mumbi Gitau. (updated with white sugar prices and last paragraph) Google Is Searching for an Answer to ChatGPT The Richest Americans Kept the Economy Booming. What Happens When They Stop Spending? A New 'China Shock' Is Destroying Jobs Around the World How TD Became America's Most Convenient Bank for Money Launderers Tesla's Gamble on MAGA Customers Won't Work ©2025 Bloomberg L.P. Sign in to access your portfolio
