In India, ChiniMandi reported that the Indian sugar and bio-energy sector is seeking greater policy certainty on ethanol blending levels beyond the current 20%, showing concern that the absence of a long-term plan is leaving large investments underused.
Deepak Ballani, Director-General of the Indian Sugar and Bio-energy Manufacturers Association (ISMA), said that clarity on future blending targets is important to ensure the viability of infrastructure already built.
He highlighted a sharp shift in feedstock usage, pointing out that sugar-based raw materials, which once accounted for nearly 90% of ethanol production, now contribute just 28%, according to the report.
“While we technically have the ability to supply ethanol beyond the 20% blending level, the lack of demand means our plants are running below capacity,” he said. This underutilization, he added, not only impacts returns on investment but also affects mills’ ability to make timely payments to farmers.
To address this, ISMA has proposed that the government gradually raise blending targets, first to 22% and eventually to 25%.