India Boosts Biofuel Blending by Allowing Oil Companies to Purchase Additional Ethanol from Sugar Mills

India allows oil firms to procure extra 800,000 tons of sugar for biofuel production, boosting its efforts to reduce fossil fuel dependence and promote sustainable energy.

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Rafia Tasleem
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India Boosts Biofuel Blending by Allowing Oil Companies to Purchase Additional Ethanol from Sugar Mills

India Boosts Biofuel Blending by Allowing Oil Companies to Purchase Additional Ethanol from Sugar Mills

India has agreed to allow oil marketing companies to procure an additional 800,000 metric tons of sugar for biofuel production, according to a government source. This move is part of the government's efforts to increase the use of biofuels and reduce India's dependence on imported fossil fuels.

The decision to allow oil companies to purchase more ethanol from sugar mills comes as a result of an improved supply situation due to unseasonal rainfall in some regions. Previously, the government had capped the amount of sugar that could be diverted for ethanol at 1.7 million metric tons due to concerns over sugar production.

Why this matters: India's move to boost biofuel blending by allowing additional ethanol procurement from sugar mills is a significant step towards reducing the country's reliance on imported fossil fuels. This decision not only supports the domestic sugar industry but also contributes to India's goals of promoting cleaner and more sustainable energy sources.

The additional diversion of 800,000 metric tons of sugar for ethanol production is expected to help boost biofuel blending in the country. India has been actively promoting the use of biofuels as a means to reduce its carbon footprint and decrease its dependence on foreign oil imports.

The unnamed government source stated, "The improved supply situation, resulting from unseasonal rainfall in some regions, has allowed us to increase the amount of sugar that can be diverted for ethanol production. This decision will support our efforts to enhance biofuel blending and move towards a more sustainable energy future."

Key Takeaways

  • India allows oil firms to procure 800,000 MT extra sugar for biofuel production.
  • This move aims to increase biofuel blending and reduce India's fossil fuel dependence.
  • Previously, sugar diversion for ethanol was capped at 1.7 million MT due to supply concerns.
  • The additional sugar supply is due to unseasonal rainfall, enabling higher ethanol procurement.
  • This decision supports India's goals of promoting cleaner and more sustainable energy sources.