Grains have emerged as one of the key feedstocks for ethanol production in India, and its share in biofuel output is likely to surge.
It is expected that the share of ethanol production from grains may increase beyond 60% in current ESY 2024-25, according to the minister.
In a response to the unstarred question in Lok Sabha, Minister of State for Consumer Affairs, Food & Public Distribution, Nimuben Jayantibhai Bambhaniya, stated, “Under the National Bio-fuel Policy, 2018, Government allows various feedstock such as sugarcane, maize, damaged foodgrains, sweet sorghum, sugar beet etc. for production of ethanol for blending in petrol. Due to promotion of maize by government for production of ethanol, maize has been the major contributor of ethanol supplied to Oil Marketing Companies (OMCs). Further, it is expected that the share of ethanol production from grains may increase beyond 60% in current ESY 2024-25. In addition, Government allows sale of FCI rice for ethanol production when excess rice is available with Food Corporation of India (FCI).”
“Under the programme, Central Government has taken various steps inter-alia to encourage ethanol production under EBP Programme which includes production of ethanol from a variety of feedstock; implementation of various ethanol Interest Subvention Schemes during 2018-22; a new scheme for Cooperative Sugar Mills notified on 06.03.2025 for conversion of their existing sugarcane based plants into multi-feed based ethanol plants; fixation of remunerative prices of ethanol produced from different feed-stocks for supply to OMCs; reduction in Goods & Service Tax (GST) on ethanol meant for EBP Programme from 18% to 5%; promotion of maize as a major feedstock for ethanol production under Ethanol Blended with Petrol (EBP) Programme; Long Term Offtake Agreements (LTOAs) by OMCs with Dedicated Ethanol Plants (DEPs) etc,” she further added.
The government has set a target of 20% ethanol blending by ESY 2025-26 and is likely to achieve soon.
Breaking News: Rajasthan: Farmers in Bhilwara are being encouraged to boost maize yield to enhance ethanol production
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