The Indian Sugar Mills Association (ISMA) has urged the government to continue with the restrictions on ethanol imports as the measure has spurred India’s petrol blending programme in the drive to green energy and also enabled timely payments to sugarcane farmers.
ISMA has, in a letter to Commerce and Industry Minister Piyush Goyal, referred to media reports suggesting the possible consideration of lifting restrictions on ethanol imports for fuel blending, as part of ongoing trade discussions with the US.
The latter states that over the last few years, the Government’s clear and forward-looking policy direction-anchored in the National Policy on Biofuels which led to placing ethanol imports for fuel under the ‘restricted’ category, has laid a solid foundation for a self-reliant, domestic ethanol economy. The interest subvention schemes and facilitative regulatory ecosystem have catalysed the establishment and expansion of indigenous ethanol
capacities across India, the letter points out.
These landmark interventions have achieved multiple national objectives of ensuring timely payments and enhanced incomes for sugarcane farmers, reducing India’s dependence on imported crude oil and promoting clean and sustainable biofuels, the letter states.
It highlights that the coordinated effort has led to India’s ethanol production capacity growing by over 140 per cent since 2018, with investments exceeding Rs 40,000 crore. Ethanol blending has already reached 18.86 per cent and is firmly on track to meet the 20 per cent blending objective ahead of target.
This remarkable progress has been made possible due to the Prime Minister’s visionary leadership and unwavering commitment to the welfare of India’s farmers. This has had a direct and measurable impact on farmers’ welfare. By allowing the diversion of sugarcane and surplus grains into ethanol production at administered prices, the government has enabled timely cane payments and improved farm-level incomes across the country, the
letter added.
The latter states that opening up ethanol imports for blending would pose challenges to the sugar industry as it would affect profitability and may lead to under-utilisation of Indian ethanol plants, many of which are still in the early stages of capital recovery.