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India’s Ethanol Push

India’s Ethanol Push:

At a G20 Energy Ministers’ meeting, the Indian PM stated that India has rolled out 20% ethanol-blended petrol this year and aims to cover the entire country by 2025.

  • Ethanol is basically 9% pure alcohol that can be blended with petrol.
  • It is different from the 94% rectified spirit which have applications in paints, and pharmaceuticals and 96% extra neutral alcohol that goes to make potable liquor.
  • India’s ethanol production programme has come a long way in the past five years, both in terms of the quantities supplied by sugar mills/distilleries to oil marketing companies (OMCs) and the raw material used.
  • India’s ethanol programme is no longer reliant on a single feedstock or crop.
  • It has diversified only from molasses and cane to rice, maize and other grains as well.
  • It will minimise supply fluctuations and price volatility on account of any one crop.
  • The incorporation of new feedstocks can create new demand for grains.