Ethanol Fuels New Hope For Farmers

The Fadnavis government is pushing ethanol production in maharashtra, but refineries have yet to sign long-term purchase agreements

- Kiran D. Tare

Shriram Shete, chairman of the Kadwa cooperative sugar mill in Maharashtra’s Dindori taluka, is overseeing the installation of a new boiler. That’s not the only upgrade he has planned—he’s also one among many in the state looking to take advantage of the Maharashtra government’s push for increased ethanol production. “This is where it will be,” he says, pointing out the spot he has chosen for his new distillery. Having already received his production licence, he plans to have the distillery constructed before the next crushing season, around Diwali.

Ethanol, a flammable, colourless chemical, has many industrial applications. Primary among those—and at the heart of Maharashtra’s push for increased production—is its use as a biofuel. In India, this idea first gained traction around 1977, when technical committees were set up to examine it. In 2000, under then-petroleum minister Ram Naik, pilot projects were established in Maharashtra and Uttar Pradesh, the success of which led to a proposal in 2003 to sell 5 per cent ethanol-blended petrol. Current regulations target a mandatory 10 per cent ethanol blend for all petrol and diesel in India by 2022. In a June 24 tweet, petroleum minister Dharmendra Pradhan said ethanol blending percentages are currently at 6.2 per cent, having risen from 0.67 per cent in 2012-13.

A major roadblock to achieving these targets is that national ethanol production is insufficient to meet demand. The Ethanol Producers’ Association, an industry body, says that 329 crore litres of ethanol are required annually. Currently, Maharashtra, the state with the highest production, produces only 44 crore litres per year.