How will the government make the needed fuel ethanol?

• Union Minister Nitin Gadkari predicts India will achieve its 20% ethanol blending target of petrol in the next two months, a year ahead of the original plan.

• The production of fuel ethanol will come from sugar and high-grade molasses, Food Corporation of India (FCI) rice, broken rice, and maize.

• India’s ethanol distillery capacity has increased to 1,600 crore litres due to government incentives and the promise of a stable, lucrative market.

• Sugar is expected to provide around 400 crore litres this ethanol year, with India’s closing sugar stocks of around 80 lakh tonnes in October 2024.

• The government reduced the price of FCI rice to distilleries from ₹28 to ₹22.5 per kg, resulting in 110 crore litres of ethanol being produced from FCI rice this ethanol year.

• Maize imports started ramping up in April 2024 due to government restrictions on sugar and high-quality molasses for ethanol production.

• The promise of a steady, lucrative ethanol market has attracted many farmers to maize cultivation across India.

• Maize production has increased by nearly six million tonnes in three years since 2020-21, for potential ethanol use.

• The long-term sustainability of fuel ethanol depends on whether the switch to ethanol and stress on maize has a negative impact on other foodgrain production.