Expecting the increase in the demand for E20 fuel in the country next year, the government is working on creating a carryover stock of ethanol for next year, said a senior food ministry official, reports PTI.
The government has set a target to achieve a 20% ethanol blending target by 2025.
Subodh Kumar, Additional Secretary in the food ministry said, “The process of ethanol blending is operating smoothly. E20 fuel is being dispensed at 100 outlets in 31 cities in the country by the Oil Marketing Companies (OMCs). We may require more E20 fuel if this goes well.”
“Taking note of this the government is planning to create a carryover stock for ethanol with OMCs and distilleries for 2023-24 considering the increase in the demand,” he said.
For 2022-23, the ethanol blending target is 12% and for the next year, it has been increased to 15%.
It is estimated that around 5 million tonnes of sugar will be diverted for ethanol production this year, which is higher than 3.6 million tonnes in 2021-22.
