Cereal Grains in Ethanol Production

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Context

• In the current supply year (November 2023-October 2024), cereal grains have overtaken sugarcane as the primary feedstock for ethanol production in India.
• This shift marks a significant change in the country's ethanol blending strategy.

COMPREHENSIVE BACKGROUND ARTICLES ON ETHANOL BLENDING:

https://www.iasgyan.in/daily-current-affairs/ethanol-blending

https://www.iasgyan.in/daily-current-affairs/ethanol-blending-in-india#:~:text=Ethanol%20blending%20is%20achieved%20by,%25%20ethanol%20and%2090%25%20gasoline.

WATCH: https://www.youtube.com/watch?v=A6X3oqnAzj

Ethanol Production Statistics

• As of June 30, 2024, sugar mills and distilleries have supplied 401 crore litres of ethanol to oil marketing companies.
• Of this, 211 crore litres (52.7%) were produced using maize and damaged foodgrains, while 190 crore litres came from sugarcane-based feedstocks like molasses and whole juice/syrup.
• This is the first-time grain-based ethanol production has surpassed 50%, a substantial increase from previous years.

Ethanol Blending Targets

• Ethanol is 99.9% pure alcohol that can be blended with petrol.
• The government aims to achieve 20% ethanol blending in petrol by 2025.
• The current average blending ratio for India stands at 13% for this supply year, up from 12.1% in 2022-23 and only 1.6% in 2013-14.
• Monthly data for 2023-24 shows a steady increase in the blending percentage, peaking at 15.9% in June.

Production Process and Feedstocks

• The production of ethanol involves fermenting sugar with yeast. For cane juice or molasses, sucrose is broken down into glucose and fructose.
• Grains, however, contain starch, which must first be converted into simpler sugars before fermentation.
• Until 2017-18, ethanol was produced only from C-heavy molasses, a byproduct of sugarcane processing.

READ ABOUT ETHANOL  BLENDING PROGRAM: https://www.iasgyan.in/daily-current-affairs/ethanol-blending-program-25#:~:text=According%20to%20a%20Report%20by,self%2Dreliance%2C%20use%20of%20damaged

Government Initiatives and Industry Adaptation

• The ethanol blended petrol (EBP) programme received a significant boost in 2018-19 when the government allowed mills to use B-heavy molasses and whole cane juice/syrup for ethanol productio
• This shift was incentivized by higher prices for ethanol produced through these routes.
• The programme saw further advancement as mills began using grains as supplementary feedstock, with multi-feedstock distilleries operating on molasses and juice/syrup during the sugarcane crushing season and on grains in the off-season.

Emergence of Maize as a Primary Feedstock

• With the government's recent restrictions on the use of Food Corporation of India rice and certain sugarcane-based feedstocks for ethanol production, maize has emerged as the top ethanol feedstock.
• The government has set an ex-distillery price of Rs 71.86 per litre for maize-based ethanol, higher than the prices for other feedstocks.

Industry Response and Market Impact

• The shift towards maize-based ethanol has been welcomed by companies that have invested in multi-feedstock distilleries. However, this change has also raised concerns.
• The All-India Poultry Breeders Association and Compound Livestock Feed Manufacturers Association have expressed concerns over maize shortages, estimating domestic production at 36 million tonnes against a requirement of 41 million tonnes.

Government Measures and Future Outlook

• In response to the maize shortage, the government has permitted the import of 0.5 million tonnes of maize at a 15% concessional duty, with the poultry and feed industry advocating for up to 5 million tonnes of imports at zero duty.
• The EBP programme continues to evolve, aiming to balance the use of diverse feedstocks to meet the growing demand for ethanol while addressing supply concerns.

Conclusion

• The rise of cereal grains, particularly maize, as the primary feedstock for ethanol production in India signifies a major shift in the country's approach to ethanol blending.
• This transition is driven by government policies, industry adaptations, and market dynamics, reflecting the complex interplay between agricultural production and energy needs.

COMPREHENSIVE ARTICLES ON ETHANOL BLENDING:

https://www.iasgyan.in/daily-current-affairs/ethanol-blending

https://www.iasgyan.in/daily-current-affairs/ethanol-blending-in-india#:~:text=Ethanol%20blending%20is%20achieved%20by,%25%20ethanol%20and%2090%25%20gasoline.

WATCH: https://www.youtube.com/watch?v=A6X3oqnAzjs

SOURCE: THE INDIAN EXPRESS