Ethanol production capacity in India increases to 1,589 crore litres

Union Minister of Consumer Affairs, Food and Public Distribution & New and Renewable Energy, Pralhad Joshi announced today that grain deficient states can directly purchase from Food Corporation of India (FCI) under the Open Market Sale Scheme (Domestic) (OMSS [D]) without participating in the e-auction from August 1st, 2024. The decision has been taken to reduce the huge surplus of stocks prior to the commencement of the new procurement season.

Under the OMSS (D), the Department of Food and Public Distribution, Government of India, will directly offload grain to states for Rs 2,800 per quintal. Joshi added that if the States/UTs want to procure more than the stipulated 5 kg of free grain per individual, then they can procure that at the same price at Rs 2,800 per quintal instead of earlier Rs 2,900 per quintal. He also asserted that the sale of atta and rice under the ‘Bharat’ brand which was slated to run till June 30th, 2024 will continue.

Minister also informed that ethanol production capacity has increased to 1,589 crore litres per annum, till date which is sufficient to meet domestic ethanol requirement of the country. With payment of about ₹ 1.05 lakh crores, more than 94.8% cane dues for the current sugar season have been cleared taking cane dues to the lowest level, he said. He also added that in the interest of farmers, about 99.9% of cane dues of 2021-22 sugar seasons have been cleared. For the previous sugar season 2022-23, against cane dues payable of Rs. 1,14,494 crores, about ₹ 1,14,235 crores have been paid & only Rs. 259 crore dues are to be paid. Thus, about 99.8% cane dues have been paid to farmers, Joshi said.

In June, ethanol blending with Petrol reached 15.90 per cent and cumulative ethanol blending during November 2023-June 2024 touched 13.0 per cent.

Government aims to achieve 20 per cent ethanol blending by 2025. To achieve the same, about 1016 crore litres of ethanol are required, and the total requirement of ethanol including for other uses is 1350 crore litres. For this, about 1700 crore liters of ethanol-producing capacity are required to be in place by 2025, considering the plant operates at 80% efficiency. The Government has estimated the demand for ethanol required for 20% blending by 2025, keeping in view the growth of petrol-based vehicles in two-wheeler and passenger vehicle segments and the projected sale of Motor Spirit.

(With inputs from PIB)

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