So far, the best ever ethanol blend with petrol has been around 5.2 per cent at the all-India level.
Ethanol blending in India has reached more than 7.2 per cent — the first time it has reached this level — in the first four months of the ethanol supply year 2020-21 (December to November), putting the country on course to meet the target of 10 per cent blending by 2022.
According to industry sources, if oil-marketing companies (OMCs) lift the ethanol they had contracted for, in the next few months, all-India average blending could be even near 8 per cent by the time the season ends in November. So far, the best ever ethanol blend with petrol has been around 5.2 per cent at the all-India level.
In states such as Goa, Karnataka, Maharashtra, Gujarat, Uttar Pradesh, Haryana, Punjab, Delhi, Uttarakhand, and Himachal Pradesh (and Daman and Diu, a Union Territory), 9.5-10 per cent ethanol is being blended with petrol. This means these states are close to the 2022 target.
But, it hasn’t been all smooth so far. Sugar industry players say blending could have been more in the first four months of the 2020-21 season but for some strategic errors by OMCs in estimating the storage capacity. Owing to this, mills are being compelled to supply ethanol to depots far from their production units.
The data from industry sources say till March 29, OMCs have asked for 4.57 billion litres for 2020-21. Of this, sugar companies have finalised bids for 3.25 billion litres. Against this, around 2.98 billion litres of ethanol has been contracted. Of this 1 billion litres (around 33.5 per cent) has been supplied, while the rest is in the process of being delivered. Around 770 million litres has been produced from B-heavy molasses and sugarcane juice, which will lead to a shortfall of 800,000 tonnes of surplus sugar. Industry players say in 2020-21 there will be a decline in the production of around 2 million tonnes of sugar because of this diversion of sugarcane for ethanol.
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