ISMA Calls for Ethanol Exports as India’s Surplus Capacity Goes Unused

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) is urging the government to approve ethanol exports to utilize over 450 crore litres of unused production capacity. ISMA Director General Deepak Ballani highlighted India's annual capacity of 1,900 crore litres, with significant underutilization due to low allocations. ISMA recommends both exports and increased ethanol blending in petrol, citing benefits like foreign exchange savings, boosted farmers' income, and reduced CO₂ emissions, to enhance energy security and support the biofuel sector.

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) is advocating for government approval of ethanol exports to address the country's significant surplus production capacity. India possesses an impressive annual ethanol production capability of up to 1,900 crore litres—900 crore litres from sugar-based feedstock and 1,000 crore litres from grains—yet over 450 crore litres currently remain unused. ISMA Director General Deepak Ballani emphasized that while the necessary infrastructure for ethanol production is in place, much of it is lying idle. This underutilization is exacerbated by the current allocation of only 289 crore litres of ethanol to the sugar sector for ESY 2025–26, representing a mere 27.5% of total allocations, creating a substantial imbalance.To rectify this, ISMA is pressing the government to permit the export of this surplus ethanol. Additionally, Ballani suggested increasing the ethanol blending level in petrol, which would further invigorate the biofuel sector and help India meet its domestic energy requirements. The benefits of ethanol blending are already evident, including substantial foreign exchange savings of ₹1.55 lakh crore, a boost to farmers' income by approximately ₹1.36 lakh crore, and a significant reduction in CO₂ emissions by nearly 790 lakh metric tonnes, equivalent to removing 175 lakh vehicles from the road. Leveraging unused capacity through both exports and higher domestic blending, as reported by chinimandi.com, is crucial for strengthening India's energy security, supporting the agricultural community, and achieving environmental sustainability goals.