Ethanol blending rate to fall to 10%: CRISIL

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Key Points

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...

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...

The governments 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...

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