As ethanol turns cheaper than petrol, sugar industry sees opportunity

Petrol at Rs 90-plus per litre is pinching consumer pockets. But for Indian sugar mills, it has opened up opportunities – and a way out of the problem of cane payment dues to farmers.

Oil marketing companies (OMC) are set to procure 283 crore litres of ethanol from mills for blending up to 10% with petrol in 2020-21 (December-November). This is against 167 crore, 179 crore and 150.5 crore litres in the preceding three supply years and a mere 38 crore litres in 2013-14.

Moreover, out of the 283 crore litres, only 59.7 crore comprises ethanol normally produced by mills from ‘C’ molasses, the leftover cane syrup after most of the sugar has been extracted and crystallised.