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Ethanol Production in India to Continue Unabated Amid Sugarcane Shortages

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Rafia Tasleem
New Update
Ethanol Production in India to Continue Unabated Amid Sugarcane Shortages

India's Consumer Affairs Minister has unequivocally stated that there is no current proposal to reduce ethanol production in the country. The statement was made in response to an inquiry from CNBC-TV18 amidst growing concerns about potential policy changes affecting ethanol production. This comes as a relief to stakeholders who rely on the country's robust ethanol production, derived primarily from crops like sugarcane and corn.

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Ethanol's role in India's energy mix

Ethanol, a biofuel, has been a vital cog in India's energy strategy. The government has been championing its use as a measure to cut down on oil imports and reduce carbon emissions. Given its environmental benefits and the country's vast agricultural resources, ethanol production has been encouraged and promoted, contributing significantly to India's energy mix.

The sugar-ethanol dilemma

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There has been growing speculation about a potential reduction in ethanol production due to sugarcane shortages caused by inadequate rainfall. The sugarcane crop has suffered, leading to a tightening of sugar inventories. This has prompted some quarters to suggest that limiting ethanol production could help ease local sugar shortages and prevent India, the world's second-largest sugar producer, from having to import the sweetener.

Government's stance on ethanol production

The government's statement aims to quell these speculations and reaffirm its commitment to maintaining current ethanol production levels. This decision has significant implications for the industry, which has seen considerable investment over the past five years to boost ethanol production capacity. The minister's response signals a reassurance that, at least for the time being, ethanol production will continue unabated, thus providing stability to an industry in flux due to weather-related challenges.

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