The grain of ethanol production, Pg14.

Key Highlights:

• The Ethanol Blending Programme (EBP), initially aimed to aid sugar mills, has shifted towards grain-based ethanol production.
• In the 2023-24 supply year, 60% of ethanol procured by Oil Marketing Companies (OMCs) was from grains, primarily maize.
• Droughts and pricing policies have led to reduced sugarcane use and increased reliance on maize for ethanol production.
• For the 2025-26 supply year, distilleries have offered 1,776.49 crore litres of ethanol, exceeding the OMCs' tender of 1,050 crore litres.

Detailed Insights:

• The EBP was launched to help sugar mills by creating an additional revenue stream through ethanol production from sugarcane byproducts.
• The government incentivized ethanol production from B-heavy molasses and direct cane juice/syrup by paying mills more to compensate for reduced sugar sales.
• The inclusion of grains like rice and maize as feedstocks, along with incentives, led to the establishment of grain-based distilleries across several states.
• In 2023-24, maize alone contributed more ethanol than all sugarcane-based sources, with 286.47 crore litres.
• Limited use of B-heavy molasses and cane juice/syrup for ethanol production was a response to drought-induced poor sugarcane crops in 2023-24 and 2024-25.
• The ex-distillery price of ethanol from maize (Rs 71.86 per litre) was higher than that from sugarcane and surplus rice in 2024-25.
• There are concerns about excess ethanol production capacity (1,822 crore litres annually) and the potential impact on food and feed availability.
• The sustainability of using maize for fuel is questioned, considering India's domestic production of about 42 mt and rising feed demand.

Key Concepts Involved:

• Ethanol Blending Programme (EBP): An initiative to mix ethanol with petrol, reducing reliance on fossil fuels and supporting agriculture.
• Oil Marketing Companies (OMCs): Public and private sector companies involved in the refining, distribution, and marketing of petroleum products.
• Feedstock: Raw material used to supply or fuel a machine or industrial process.