To address the challenges faced by the sugar industry and meet the 20 per cent ethanol blending target by 2030, the Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has stressed the need for strategic policy interventions by the Centre. The drop in Indian sugarcane production due to the global climate phenomenon, EL Nino, has significantly impacted ethanol production, with a sudden halt in production from mid-December 2023.

Despite the drop in production, ISMA asserts that India could have produced an additional 250 crore litres of ethanol by diverting a further quantity of around 25 lakh tonnes of sugar, even after meeting the full domestic demand requirements. This surplus could have been almost adequate to meet the current ethanol year requirement from the sugar industry.

Prabhakar Rao, President of the ISMA said, “The Indian sugar industry is well-positioned to meet the government’s ambitious 20 per cent ethanol blending target till 2030. Our industry can contribute a significant 55 per cent of the ethanol requirement, and even increase that to up to 60 per cent if we can get stable policy support and investment on sugarcane production stabilisation.”

However, several challenges need to be addressed, including the availability and affordability of raw materials for ethanol production.

Benefitting all stakeholders

To enable the sugar industry to meet the Ethanol Blending Requirement, Rao suggested that the Minimum Support Price (MSP) for sugar and ethanol prices for various feedstocks be fixed harmoniously, while announcing the Fair and Remunerative Price (FRP) for sugarcane. This will ensure the financial viability of the industry and attract more investments, leading to capacity creation that can help meet domestic sugar requirements and produce ethanol as per the EBP programme, he said

ISMA emphasises the need for stakeholder collaboration, regulatory tweaks and international inspiration to transform the sugar industry. The successful implementation of these policy interventions is crucial not only for sustainable energy practices but also for the financial strength of the sector and the welfare of farmers.

As the industry navigates these challenges, Rao urged stakeholders to collaborate, innovate and take positive action to ensure a smooth transition towards a future powered by renewable resources, paving the way for a greener and more sustainable tomorrow.