ISMA Director General Defends Ethanol Programme Amidst Industry Challenges

What's Happening?

The Director General of the Indian Sugar & Bio-energy Manufacturers Association (ISMA), Deepak Ballani, has addressed concerns regarding India's ethanol blending programme, emphasizing its scientific validation and strategic importance for energy independence and farmer welfare. The sugar industry faces challenges such as stagnant ethanol procurement prices, mounting cane arrears, and the need for government policy support. Despite these issues, sugar production in Maharashtra is expected to increase significantly in the upcoming season, supported by improved crop quality and water availability.

Why It's Important?

The ethanol blending programme is crucial for India's energy security and farmer income, reducing dependency on oil imports and stabilizing sugarcane prices. The programme supports over five crore sugarcane farmers and contributes to environmental sustainability by reducing greenhouse gas emissions. However, the lack of revision in ethanol procurement prices and sugar MSP poses financial stress for mills, potentially impacting the programme's success and farmer payments. Addressing these issues is vital for sustaining the industry's growth and achieving the government's blending targets.

What's Next?

ISMA is advocating for policy changes, including revising the MSP of sugar and ethanol procurement prices to align with production costs. The association is also pushing for the allowance of sugar exports to manage surplus stocks. These measures aim to protect farmer incomes, ensure mill viability, and support the ethanol blending programme. The government’s response to these recommendations will be critical in determining the industry's future trajectory.

Beyond the Headlines

The ethanol programme's success could lead to broader adoption of flex-fuel vehicles, reducing GST on ethanol fuels, and promoting grain-based ethanol production. These initiatives align with India's vision of transforming farmers into energy providers and enhancing rural incomes.