Overview

• Sugar-based ethanol contribution declined from 73% in 2022-23 to 38% in 2023-24 and is projected at 28% for 2024-25 despite potential to divert up to 40 lakh tonnes of sugar.
• An industry delegation led by Ravi Gupta urged the Prime Minister’s Office to align ethanol procurement prices with sugarcane FRP hikes and extend blending targets beyond 20%.
• Grain-based feedstocks produced 650 crore litres of ethanol in 2024-25, solidifying their dominance over the 250 crore litres derived from sugar.
• Although India’s ethanol capacity has expanded to 1,800 crore litres by 2025, about half remains underutilized as mills secure higher margins from direct sugar sales.
• Producers have proposed accelerating flex-fuel vehicle deployment and exploring ethanol blending in diesel to broaden fuel demand and bolster mill finances.