The Ministry of Consumer Affairs, Food and Public Distribution in India has recently put limits on the utilization of sugarcane juice or syrup for ethanol production – a crucial element in Ethanol Blended Petrol (EBP). This restriction is part of a larger government initiative aimed at ensuring domestic sugar availability, which began with a prohibition on sugar exports.
Understanding Ethanol Blending
Ethanol is one of the main biofuels, typically produced either by fermentation of sugars by yeasts or through petrochemical processes like ethylene hydration. In its purest form (99.9% alcohol), ethanol can be mixed with petrol in a process known as Ethanol Blending. The aim of EBP is to decrease reliance on Crude Oil Imports, reduce carbon emissions, and augment farmers’ incomes. The Indian Government has expedited its target for achieving 20% ethanol blending in petrol to 2025 from 2030.
Reasons for Restricting Sugar for Ethanol Production
The decision to restrict the diversion of sugarcane juice or syrup for ethanol production is primarily due to fears of a possible shortfall in sugar production. By emphasizing sugar production over fuel production, the government aligns itself with the priority of ensuring food security. Moreover, the government is attempting to manage the balance between supply and demand in the sugar market to stabilize sugar availability and potentially avoid any price volatility.
Implications of this Decision
This restrictive measure will impact approximately 28% of total ethanol production, leading to a reduced volume of ethanol generated from this high-value feedstock. Consequently, sugar mills’ earnings are expected to be affected, as sugarcane juice or syrup fetch higher prices compared to other feedstocks used in ethanol production. Moreover, this restriction poses challenges for meeting the ethanol fuel-blending targets set by the government.
Alternatives for Ethanol Production
Various other sources can be used for ethanol production. Cereal grains such as corn, barley, and wheat contain starch that can be converted into fermentable sugars. Similarly, cellulosic biomass, including agricultural residues and dedicated energy crops, can also be broken down into sugars for fermentation. Surplus rice, damaged grains, and some fruits and vegetables with high sugar content like grapes and potatoes, are additional potential sources for ethanol production.
Path Forward
Exploring and incentivizing the use of alternative feedstocks like grains, rice, damaged grains, and cellulosic biomass for ethanol production is crucial. Such diversification mitigates the dependency on sugarcane-based sources and assures a stable supply chain. Policies need to be implemented that encourage the use of diverse feedstocks for ethanol production. Differential pricing strategies similar to previous government strategies can incentivize the production of ethanol from non-sugarcane sources. Clear and stable policies will support long-term investments in diversified feedstock utilization.
