Uttar Pradesh is set to be the top ethanol producer in the country as the size of the industry in the state has crossed Rs 12,000 crore mark.
UP’s ethanol capacity is pegged at 2 billion litres per annum, up nearly eight times from 240 million litres per annum five years ago.
“The state’s ethanol capacity is expected to touch 2.25 billion litres per annum in the next couple of years,” Additional Chief Secretary (Sugar Industry) Sanjay Bhoosreddy said.
He said private sector distilleries had invested almost Rs 7,500 crore to upgrade the state’s composite ethanol capacity over the past five years.
The Yogi Adityanath government is trying to integrate the sugarcane crop with a lucrative ethanol value chain in order to provide remunerative prices to the farmers and protect the sector from the cyclical nature of the sugar market.
“In the current 2022-23 sugarcane crushing season, five private mills will directly manufacture ethanol from sugarcane juice without producing sugar. Besides, 71 other mills will produce ethanol from B-heavy molasses,” Bhoosreddy said.
Meanwhile, the state’s sugarcane area is estimated to surge by 3 per cent or 84,000 hectares to more than 2.85 million hectares, while the sugarcane production is estimated at 2.35 crore MT in the current season. A total of 120 sugar mills -- 93 private units, 24 cooperative units, and three UP State Sugar Corporation units -- will operate during the current cane crushing season.
While UP has topped the sugar production chart for many years, Maharashtra has taken the lead in the past couple of years due to higher sugarcane diversion for ethanol production in UP. Besides, UP leads in ethanol-blended fuel ratio owing to ready availability and robust logistics supply chain.
More than 4.5 million rural households are associated with the UP sugarcane sector, which includes sugar, ethanol, molasses, power cogeneration, jaggery, khandsari (unrefined sugar), etc, in its by-product portfolio. The consolidated annual sugarcane economy is worth nearly Rs 50,000 crore in UP.
FAQs
The minister said that with this growth in capacity, UP was set to become the top ethanol producer in the country. “The size of the industry in the state has crossed Rs 12,000 crore. The state's ethanol capacity is expected to reach 2.25 billion litres per annum in few years.
Who is the biggest producer of ethanol in India? ›
Bajaj Hindustan Sugar Company, based in Mumbai, is India's largest producer of sugar and ethanol, primarily focusing on ethanol supply. Established in 1931, it emerged as a trailblazer in the Indian Sugar Industry.
How much does it cost to set up an ethanol production plant in India? ›
The present proposal is for setting up a 200 KLD fuel ethanol plant (Grain based) with 6MW of cogen plant at Village- Agariya Tehsil & Dist Narsinghpur (MP) in the State of Madhya Pradesh at an estimated cost Rs. 179.00 Crores.
What is the position of Uttar Pradesh in ethanol production? ›
Uttar Pradesh has become the largest ethanol supplier of the country. The total number of distilleries in the state is 75 with a total production capacity of 249.49 crore liters per annum. The total number of ethanol producing distilleries are 55 with production capacity of 166.17 crore liters per annum.
What is the profit margin of ethanol plant in India? ›
On average, ethanol production from any raw material can earn a business Rs. 20-25 per litre of profit. The raw material has a significant impact on the profit margin. The best way to save profit is to store raw materials such as sugarcane during their season.
What is the future of ethanol in India 2024? ›
Overview of Ethanol Industry In India 2024
With the target for 20% ethanol blending approaching next year, 2024 seems to be promising year for ethanol stocks. ethanol, a renewable and sustainable biofuel, is gaining prominence as a cleaner alternative to traditional fossil fuels.
Who is the buyer of ethanol in India? ›
TOKYO CHEMICAL INDUSTRY INDIA PRIVATE LIMITED accounted for maximum import market share with 1,014 shipments followed by SIGMA ALDRICH CHEMICALS PVT LTD with 789 and CAPRICORN ENTERPRISES P L was at the 3rd spot with 782 shipments.
How much land is required for ethanol plant in India? ›
60-100 crores, depending on the feedstock and the land requirement of approx. 15 acres.
How profitable is ethanol production? ›
Assuming all operating plants in the industry earned the average net profit for the representative plant of $0.29 per gallon and that total ethanol production for the U.S. was 15.5 billion gallons in 2023, total (pre-tax) profit for all operating ethanol plants can be estimated at $4.5 billion.
Can I start an ethanol business in India? ›
Licences and Approvals required to Start Bioethanol Industry
PESO licence: As per an order passed by NGT, it is now mandatory for distilleries and sugar mills producing ethanol to obtain a license from the Petroleum and Explosive Safety Organisation of India.
The escalating demand for biofuels, specifically ethanol, aligns with India's pursuit of sustainable development, representing a fundamental shift in the country's energy landscape. Additionally, energy consumption will continue to grow, driven by its growing population, urbanisation, and industrialisation.
What is the cost of ethanol plant in Maharashtra? ›
The ethanol production plant authomatic ethanol plant capacity 10 KLPD cost starting from 20 cr, therefore for 5 KLPD cost 10 cr, and it is depending upon the different manufacturers.
What is the ethanol project in India? ›
To facilitate production of ethanol, Government in March, 2019 had notified the “Pradhan Mantri JI-VAN (Jaiv Indhan - Vatavaran Anukool fasal awashesh Nivaran) Yojana” for providing financial support for setting up Second Generation (2G) ethanol projects in the country using lignocellulosic biomass and other renewable ...
Who decides ethanol price in India? ›
The ex-mill price of ethanol derived from damaged food grains unfit for human consumption will be decided by OMCs. A single ethanol price will be declared for all the varieties of damaged food grains, unfit for human consumption category.
Who is the largest producer of ethanol? ›
The United States is the world's largest producer of ethanol, having produced over 15 billion gallons in 2021 and 2022. Together, the United States and Brazil produce 80% of the world's ethanol. The vast majority of U.S. ethanol is produced from corn, while Brazil primarily uses sugarcane.
What is the capital cost of ethanol plant? ›
A 20 million gallon per year ethanol plant using sugarcane or sugar beets as a feedstock would be expected to have capital expenditure Page 5 v costs in the range of $2.10 to $2.20 per gallon of annual capacity, compared to an estimate of $1.50 per gallon of annual capacity for a corn-based facility.
Who is the world's largest exporter of ethanol? ›
The United States is the world leader in the supply and export of ethanol.
Which company produces the most ethanol? ›
Poet Biorefining is the largest ethanol producer in the United States. As of March 2023, the South Dakota-based company had an ethanol production capacity of 2.7 billion gallons per annum across 33 plants in the Midwest. Ethanol is used in chemical and pharmaceutical manufacturing, and as a biofuel.
Who is the largest consumer of ethanol in the world? ›
United States. The United States produces and consumes more ethanol fuel than any other country in the world. Ethanol use as fuel dates back to Henry Ford, who in 1896 designed his first car, the "Quadricycle" to run on pure ethanol.
What is the source of ethanol in India? ›
The major source for production of bio-ethanol in India is from molasses, a by-product of sugarcane. The availability is hence dependant on the cane and sugar production that are cyclical in nature. Ethanol has many other alternative uses such as potable alcohol and use in chemical and pharmaceutical industry.
