Ethanol blending rate could fall to less than 10% in ethanol supply year (ESY) 2023-24 (November 2023 to October 2024) against 12% in 2022-23, after government’s decision to restrict the use of sugarcane juice and sugar syrup for ethanol production, according to a report by CRISIL.<\/p>\n
The government restricted the use of sugarcane juice and sugar syrup for ethanol production in ESY 2023-24, due to lower production of sugarcane on account of erratic rains.<\/p>\n
However, supply of ethanol from existing offers received by oil marketing companies from B heavy molasses, C heavy molasses and grains will continue.<\/p>\n
Production of sugarcane and sugar is projected to decline by around 9% and around 3%, respectively due to scanty rainfall seen in key sugarcane producing states of Maharashtra and Karnataka.<\/p>\n
At the end of SS 2023 (in September 2023) closing inventories of sugar were adequate to meet just 2 months\u2019 consumption as against the past 5-year average of 4 months\u2019 consumption.<\/p>\n
In October 2023, the government also extended restrictions on sugar exports beyond October 2024. In July, the Food Corporation of India stopped supplying rice for ethanol production amid supply concerns.<\/p>\n
Sugar prices surged 7% and 5% in SS 2021-22 and SS 2022-23, respectively. By the end of SS 2022-23, sugar prices had crossed Rs 40 per kg in northern India, due to lower sugarcane availability and its increased diversion towards ethanol.<\/p>\n
Closing inventory stood at 2 months\u2019 consumption in SS 2022-23, versus an average of 4 months
\nin the last 5 years.<\/p>\n
The government\u2019s ambitious target of attaining 20% ethanol-blended petrol by EY 2024-25 and 30% by EY 2029-30 is likely to face setbacks due to the halt of ethanol production from sugarcane juice in EY 2023-24.<\/p>\n
In EY 2022-23, a blending rate of 12% was achieved, and the industry had anticipated a rate of 13-15% in EY 2023-24.<\/p>\n","protected":false},"excerpt":{"rendered":"
Ethanol blending rate could fall to less than 10% in ethanol supply year (ESY) 2023-24 (November 2023 to October 2024) against 12% in 2022-23, after government’s decision to restrict the use of sugarcane juice and sugar syrup for ethanol production, according to a report by CRISIL. The government restricted the use of sugarcane juice and sugar syrup for ethanol production in ESY 2023-24, due to lower production of sugarcane on account of erratic rains. However, supply of ethanol from existing offers received by oil marketing companies from B heavy molasses, C heavy molasses and grains will continue. Production of sugarcane […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[133],"tags":[],"class_list":["post-622040","post","type-post","status-publish","format-standard","hentry","category-oil-gas"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/622040","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=622040"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/622040\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=622040"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=622040"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=622040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}