Itis reported by finance.yahoo.

On Nov. 2, the center, as part of its ethanol blending programme (EBP), approved a higher price for ethanol that is derived from different sugarcane-based raw materials. This was done for the ethanol supply year from December 1, 2022, to October 31, 2023, which coincides with the current sugar season. The Centre, in a press release, stated that the higher price of sugarcane-derived ethanol for oil marketing companies (OMC) is a bid to benefit distilleries and will “help in early payment to cane farmers.” The central government’s cabinet committee on economic affairs approved this higher price.

India is keen to reduce its dependence on imported crude oil, and ethanol-blended petrol is part of its strategy. In addition, ethanol, a biofuel, is a cleaner alternative to fossil fuels. Also, as it is derived from sugar and starch-rich agricultural byproducts, it helps provide an additional use of these products and boosts incomes for farmers.

The National Biofuel Policy of 2018 gives impetus to increase ethanol production from sugar molasses, sugarcane juice, sugar-containing materials (sugar beet, sweet sorghum) and starch-containing materials (corn, cassava, damaged food grains such as wheat, broken rice, rotten potatoes) that are unfit for human consumption. Currently, India has reached a 10% blending target, with 4.5 billion liters of ethanol already being produced. It aspires to reach a 20% target by 2025, for which it will need to produce 10 billion litres of ethanol.

In addition, India’s consumer affairs, food, and public distribution ministry has prioritized the availability of 27,5 million tonnes of sugar for domestic consumption, over 5 million tonnes of sugar for diversion to ethanol production, and over 6 million tonnes for exports.