Facts for Prelims (FFP)
Source: ET
Context: The government has temporarily banned the use of sugarcane juice and sugar syrup for ethanol production due to uncertainties in cane output for the current season as per the Sugar (Control) Order 1966.
Why the temporary ban?
Government intends to maintain adequate domestic sugar availability and price stability, due to an estimated fall in sugar production in the current season. Sugar mills find it more profitable to sell sugarcane and syrup to Oil marketing companies for ethanol blending. However, this may create a shortage of sugar in the Indian market.
Will it impact the Government’s goal of Ethanol blending?
The government says the ban would not impact India’s goal of achieving its 20% ethanol blending target by 2025-26. The government plans to promote ethanol production using alternative feedstocks such as B and C-heavy molasses, damaged rice, and maize. The government is also exploring the use of maize as a feedstock for ethanol production, with plans to procure maize directly from farmers at a minimum support price.
In the 2022-23 ethanol supply year, the government achieved a 12% blending of ethanol with petrol, and the target for the current year is 15%.
The government programme for ethanol blending:
- National Policy on Biofuels (2018);
- Ethanol blending Program (target of 20 per cent ethanol blending in petrol by 2025);
- PM JI-VAN YOJANA for providing financial support for setting up second-generation (2G) ethanol projects;
- E100 Pilot project;
- Repurpose Used Cooking Oil (RUCO)
