Supply of grain-based ethanol likely to more than double

21-Jan-2025 06:04 PM

The supply of grain-based ethanol in India is set to more than double in the 2023-24 marketing season, with an expected 4.23 billion liters, up from 2.08 billion liters in the previous period.

The increase in supply is largely attributed to the higher recovery rate of ethanol from grains like broken rice and maize compared to sugarcane.

For example, 420 liters of ethanol can be derived from one tonne of broken rice, while only 300-320 liters can be produced from one tonne of sugar syrup.

India traditionally produces around 360 lakh tonnes of maize annually, which has mainly been used in the poultry feed and starch industries.

However, due to the growing demand for ethanol production, distilleries have faced a shortage of maize, requiring 70-80 lakh tonnes, while only about 50 lakh tonnes have been available.

The Indian government has set an ambitious target of blending 20% ethanol with petrol, which will require 10 billion liters of ethanol.

To meet this, around 35-40 lakh tonnes of maize are needed for the production of 1.35 billion liters of ethanol.

The government is taking steps to address these challenges by setting a 24 lakh tonne rice quota for ethanol distilleries, offering it at a reduced price of Rs 2250 per quintal.

This move, along with increased ethanol production from sugarcane, is expected to help meet the ethanol blending target.