Sugar Diversion
Govt to allow 4-5 mln tn sugar for ethanol blending next season - joint secy
This story was originally published at 18:06 IST on 11 August 2025
Register to read our real-time news.Informist, Monday, Aug. 11, 2025
Please click here to read all liners published on this story
--Food joint secy: Govt mulls higher allocation of broken rice for ethanol
--CONTEXT: Joint Secretary, food dept, Ashwini Srivastava at biofuel event
--Food joint secy: Working on policy to produce ethanol from sweet sorghum
--Food joint secy: Working on ethanol output roadmap for next 5 years
--Food min official: To allow 4-5 mln tn sugar for ethanol blend next season
--Food min official: Will consider sugar exports after meeting ethanol needs
NEW DELHI – The government is set to allow the diversion of 4–5 million tonnes of sugar for ethanol production in the upcoming sugar season starting October, Ashwini Srivastava, joint secretary (sugar), Department of Food and Public Administration, said on Monday.
The decision is a key step towards meeting India's ambitious ethanol blending targets and stabilising sugar prices nationwide, Srivasatava said at a biofuel event in New Delhi. Any remaining surplus, after meeting both domestic consumption and ethanol requirements, will be considered for export, he said.
According to the official, the government is also working on a comprehensive roadmap for ethanol output over the next five years. This strategy will involve not only sugarcane-derived ethanol but also expansion into other sustainable feedstocks such as sweet sorghum, he said.
"Policy development is underway to promote ethanol production from sweet sorghum, which requires less water than sugarcane and is now under field trials in Karnataka and Maharashtra," he said.
The allocation of broken rice for ethanol is also set to rise, he said. The government is planning to reduce the percentage of broken rice in its procurement to 10% from the current 25% starting in October, he said.
The idea is to reduce the broken grain percentage, normally 25%, in the rice procured for the central pool and make it available for ethanol production in the market, he said.
The government will hold this experiment to reduce the broken percentage to 10% in 5 states, including Punjab, Haryana, Chhattisgarh, Odisha, and Andhra Pradesh. The 15% excess broken rice generated will be auctioned at the mill level, which can be utilised by industries such as ethanol and feed, he said.
India achieved 20% ethanol blending in petrol in July, Petroleum and Natural Gas Minister Hardeep Singh Puri had said. End
Reported by Pallavi Singhal
Edited by Saji George Titus
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
