Sugar-Based Ethanol’s Shrinking Role in India’s EBP Mix
Why in the news
Sugar-based ethanol, central to blending when it began in 2003, is losing share to grain-based supply.
Limits of sugar-based ethanol
- Water-hungry and tied to sugar availability; last year’s monsoon failures cut priority.
- No hike in procurement price for cane juice or B-heavy molasses ethanol.
- Mills face idle distilleries and financial strain.
Shift
| Source | Position |
|---|---|
| Grain-based | Favoured; surplus maize and FCI rice; capacity 505 crore litres |
| 2G biofuels | From crop residues; technology still maturing |
Way forward
- Adopt multi-feedstock output.
- Extend the interest subvention scheme, now for cooperative mills, to private mills (60% of sector).
- Retrofitting aid and assured pricing.
Exam angle
- EBP programme began in 2003.